A bank has made two loans, A & B, charging a base lending rate of 10 per cent. It expects a probability of default of 5 per cent for both loans. If the proportion of the principal and interest that is collectible on default is higher for loan A, which of the following statements is true: (0.5 marks)Question 6Answera.Loan A has a higher risk.b.Loan B has a higher risk.c.Loans A and B have the same level of risk.d.None of the above is correct.

. Banks provide a higher rate of interest on which one of the following accounts?

Banks may borrow from or lend to another bank in the Australian Cash Market. A loan of excess reserves from one bank to another bank is recorded as a(n) ________ for the lending bank and a(n) ________ for the borrowing bank. A. asset; liability B. liability; asset C. asset; asset D. liability; liability

A commercial bank can receive a loan from another commercial bank in the Group of answer choicesFederal funds marketbank loan marketFed marketDiscount market

Fill in the Blank QuestionFill in the blank question.When a small business owner borrows money from a bank, they will repay the original principal amount plus . (Enter one word in the blank)

Explain one piece ofinformation a bank manager needs before granting additional loan capital to a business.