The State Bank Offers an Interest Rate of 5

question 90

Multiple Choice

The State Bank offers an interest rate of 5.5% on savings and 6% on loans, while the Colonial Bank offers 6.5% on savings and 7% on loans. Which of the following is the LEAST likely outcome of such a situation?

• A) The State Bank would experience a surge in demand for loans.
• B) The Colonial Bank would experience a surge in demand for deposits.
• C) The State Bank would experience a fall in demand for deposits.
• D) The Colonial Bank would experience a surge in demand for loans.

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Definitions:

Spontaneity

Acting on impulse rather than planning in advance, characterized by sudden and unplanned actions.

Professional Salespeople

Individuals who specialize in selling products or services, often using expert knowledge and skills to meet their customers' needs and achieve sales targets.

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To practice or prepare beforehand, especially in the context of planning presentations or refining sales pitches.

Autosuggestion

A psychological technique involving self-influenced thoughts to change behavior or outcomes.