Consider an economy where Banks can invest in one of two projects, G and B. Project G pays G if successful and zero if not successful and has a probability of success ag. Project B pays B if successful and zero if not successful and has a probability of success TB. Suppose also that project G requires an additional cost of c. Assume that banks are required to hold an amount of capital k for each unit of investment. Banks are financed by short term investors who are risk neutral and who require an expected rate of return equal to the risk free rate which is zero. Capital is costly because its holders can demand a rate of return of p > 0 and so the profit of a bank is given by either TG(G-(1-k)R)-C-(1+p)k or ab(B-(1-k)R) - (1+p)k depending on what project is invested in Suppose that G = 8, B = 14, TG = 5, B = {and c == 1. If k = 0, i.e. banks are not required and to hold any capital, what is the critical level of interest rates above which the bank will choose to invest in the bad project? Options: A. 3/4 B. 4/5 C. 5/4 D. 4/2 E. None of A-D

How can we determine the number of payment periods?

When does the money have time value?

Only typed answer and please don't use chatgpt  You are looking for a new apartment in Manhattan. Your income is $4,000 per month, and you know that you should not spend more than 25 percent of your income on rent. You have come across the following listing for one-bedroom apartments on craigslist. You are indifferent about location, and transportation costs are the same to each neighborhood.   Chelsea $1,200   Battery Park $2,200   Delancey $950   Midtown $1,500 Instructions: You may select more than one answer. Click the box with a check mark for correct answers and click to empty the box for the wrong answers.   a. Which apartments fall within your budget?   Chelsea   Battery Park   Delancey   Midtown b. Suppose you adhere to the 25 percent guideline but also receive a $1,000 monthly cost-of-living supplement since you are living and working in Manhattan. Which apartments fall within your budget now? Chelsea   Battery Park   Delancey   Midtown