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3I0-012 · Question #225

You have quoted your customer the following CAD deposit rates: 1M 1.00-05% 2M 1.06-11% 3M 1.13-18% The customer says, "I give you CAD 20,000,000.00 in the two's". What have you done?

The correct answer is A. Borrowed CAD 20,000,000.00 at 1.06%. See the full explanation below for the reasoning.

Question

You have quoted your customer the following CAD deposit rates:

1M 1.00-05% 2M 1.06-11% 3M 1.13-18% The customer says, "I give you CAD 20,000,000.00 in the two's". What have you done?

Options

  • ABorrowed CAD 20,000,000.00 at 1.06%
  • BLent CAD 20,000,000.00 at 1.11%
  • CBorrowed CAD 20,000,000.00 at 1.11%
  • DLent CAD 20,000,000.00 at 1.06%

How the community answered

(25 responses)
  • A
    80% (20)
  • B
    12% (3)
  • C
    4% (1)
  • D
    4% (1)

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