If a Bank Is Asked to Quote a Rate on a One-Year

question 13

True/False

If a bank is asked to quote a rate on a one-year loan one year from today and the current interest rate on a one-year loan is 7% and a two-year loan is 8%,it should quote 7.5%,which is the average of the two rates.

Distinguish between point estimates and interval estimates.

Identify appropriate point estimators for population parameters.

Comprehend the implications of sampling error on point estimates.

Understand the concept and characteristics of unbiased estimators.