1. You have been told that the yield to maturity on 3-month Treasury bills is 4% and the current inflation rate is 2%. Estimate the real rate of interest using both methods.
2. 20 years ago, Maria's annual salary was $25,420. Today, she earns $86,357. What was the average annual growth rate of Maria's salary? Round the answer to two decimal places in pecentage form. Show work please.
3. logical insight for why high capital requirements may restrict a bank’s access to capital. Also, offer some insight for why high capital requirements for all banks in the U.S. can actually allow the banks easier access to capital. Which of the arguments do you believe?