BNP Paribas has 800 depositors. Each depositor deposits $1,000 ino the berk ENP Parbas offers s depostors an erestte NP then uses the deposis make 2 year simple loens at an interest rate of . Depositors of BNP Parbas can either withdrantheir deposits at or t2 Act NP sell s loans the inisal loan values, freed Assume thateach depositor believes that there are a total of X number of depositors who will hdrew tLetk be the cufsuch that X>khe bank fails and f X
BNP Paribas has 800 depositors. Each depositor deposits $1,000 ino the berk ENP Parbas offers s depostors an erestte NP then uses the deposis make 2 year simple loens at an interest rate of . Depositors of BNP Parbas can either withdrantheir deposits at or t2 Act NP sell s loans the inisal loan values, freed Assume thateach depositor believes that there are a total of X number of depositors who will hdrew tLetk be the cufsuch that X>khe bank fails and f X
Chapter14: Banking And The Money Supply
Section: Chapter Questions
Problem 2.3P
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![Question 22
pinaver
BNP Paribas has 800 depositors. Each depositor deposits $1,000 into the bank at t-0. BNP Paribas offers its depositors an interest rate. NP then uses the deposits to make 2 year
simple loans at an interest rate of B Depositors of BNP Paribas can either withdraw their deposits at t1 or t-2. At t1, BNP can sell its loans at the initial loan values, if needed
Assume that each depositor believes that there are a total of X number of depositors who will withdrew at t. Let k be the cutuff such that if X>. the bark fal and ifXk the benk
does not fail. What is the value ofk? Round your answer to at least 2 decimal places](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F696c4907-7c25-4365-9706-490dcd9ad786%2F0cdb5cfb-144b-43bb-a166-4b0a83d875c7%2Fvyho2o_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question 22
pinaver
BNP Paribas has 800 depositors. Each depositor deposits $1,000 into the bank at t-0. BNP Paribas offers its depositors an interest rate. NP then uses the deposits to make 2 year
simple loans at an interest rate of B Depositors of BNP Paribas can either withdraw their deposits at t1 or t-2. At t1, BNP can sell its loans at the initial loan values, if needed
Assume that each depositor believes that there are a total of X number of depositors who will withdrew at t. Let k be the cutuff such that if X>. the bark fal and ifXk the benk
does not fail. What is the value ofk? Round your answer to at least 2 decimal places
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