Suppose Big Bank offers an interest rate of 10.0 % on both savings and loans, and Bank Enn offers an interest rate of 10.5 % on both savings and loans. a. What profit opportunity is available? b. Which bank would experience a surge in the demand for loans? Which bank would receive a surge in deposits? c. What would you expect to happen to the interest rates the two banks are offering? a. What profit opportunity is available? A. Take a loan from Big Bank at 10.0 % and save the money in Bank Enn at 10.5 %. B. Take a loan from Bank Enn at 10.5 % and save the money in Big Bank at 10.0 %. C. Take a loan from Big Bank at 10.5 % and save the money in Big Bank at 10.0 %. D. Save at both banks.
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