An Individual Can Borrow a Certain Sum of Money from Any

question 152

Multiple Choice

An individual can borrow a certain sum of money from any of the three banks in her town-Bank 1,Bank 2,and Bank 3.Bank 1 offers her loans at an annual interest rate of 5 percent,Bank 2 offers her loans at an annual interest rate of 3 percent,and Bank 3 offers her a loan at an annual interest rate of 10 percent.A rational individual will ________.

• A) borrow from Bank 1
• B) borrow from Bank 2
• C) borrow from Bank 3
• D) be indifferent about borrowing from any of the three banks

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Definitions:

North Americans

People originating from or residing in North America, including the United States, Canada, and Mexico.

Percent

A mathematical term representing a part per hundred, used to describe fractions in terms of whole numbers.

Orbitofrontal Cortex

A prefrontal cortex region involved in decision-making, impulse control, and the processing of rewards and punishments.

Initiative

Initiative refers to the ability to assess and initiate things independently, often seen as taking charge or starting projects on one's own.