Ultimate access to all questions.
Upgrade Now 🚀
Sign in to unlock AI tutor
A bank currently has 100millionofdepositsearninganaveragerateof2100 million of deposits earning an average rate of 2%. It would like to raise an additional 100millionofdepositsearninganaveragerateof250 million, but to do so, will have to raise the deposit rate to 3% on both the old and new accounts. What is the marginal cost rate of the additional $50 million in funds?
A
3%.
B
5%.
C
7%.
D
9%.
