Suppose you are a lender the t-bill interest rate is 14 if


Suppose you are a lender. The T-bill interest rate is 1.4%. If you do not lend to a borrower during a round of the experiment, which one of the following would happen in that round?

A. The computer would automatically purchase a T-bill for you, and you would have a loss of $14.

B. The computer would automatically purchase a T-bill for you, and you would have a gain of $1,000.

C. You will end up with neither a loan nor a T-bill, and your gain will be zero.

D. You will end up with neither a loan nor a T-bill, and you will have a loss of $14.

E. The computer would automatically purchase a T-bill for you, and you would have a gain of $14.

Request for Solution File

Ask an Expert for Answer!!
Business Economics: Suppose you are a lender the t-bill interest rate is 14 if
Reference No:- TGS01190020

Expected delivery within 24 Hours