QUESTION

BUS 401 Suppose the following rates are averages for banks in your area: interest checking accounts pay 1%, savings acco

Category: Business
Subject: Finance
Due Date: 01/27/2016
Question Asked: 2016-01-27 15:15:15

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1. Suppose the following rates are averages for banks in your area: interest checking accounts pay 1%, savings accounts pay 2%, and one-year certificates of deposit pay 3%. All accounts are federally insured by the FDIC. The difference in rates can be explained mainly by (Points : 1)

liquidity premiums.

default risk premiums.

maturity premiums.

inflation risk premiums.

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BUS 401 Suppose the following rates are averages for banks in your area: interest checking accounts pay 1%, savings acco

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Posted on 2016-01-27 15:15:15

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...ges for banks in your area: interest checking accounts pay 1%, savings acco...

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