Project description:
1. Go to the official website of the following banks:
Royal Bank of Canada
CIBC
Bank of Montreal
HSBC Bank Canada
a. Find the interest rates these banks pay on (i) saving deposits; and (ii) certificate of deposit (CD). Which bank pays the highest interest rate on the deposits they accept? Report the interest rates according to term to maturity.
b. Find both the variable interest rate and the fixed interest rate that these banks charge on home equity loan. Which bank charges the lowest interest rate on the home equity loan? Report the interest rates according to term to maturity.
c. Which bank has the highest profit margin?
2. Chapter 11 of the book discusses the lemons problem and its effect on the efficient functioning of a market. This theory was initially developed by George Akerlof. Go to
https://www.nobelprize.org/nobel_prizes/economics/laureates/2001/.
Click the link to George A. Akerlof and then to Article. This site provides information on Akerlofs experience on writing the The Market for Lemons. In your own words, summarize his research ideas in one page (Times New Roman, 12pt, double space).