Multiple Choice
Your commercial bank is offering a one-year CD with an interest rate of 7 percent.A competing bank offers an interest of 10 percent on their one-year certificate.The risk premium offered by the competing bank is
A) 7 percent.
B) 3 percent.
C) 4 percent.
D) 1) 5 percent.
Correct Answer:
Verified
Correct Answer:
Verified
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