Pacific shores bank makes a vacation loan to steve at an interest rate of 8.50 percent. the one year tbill rate is 4%. the lgd on a vacation is 100%. when steve asks for a second loan, this time to buy a car, pacific shores bank offers him a rate of 5.68%. what recovery rate does pacific shores bank use to price the auto loan? (your answer should be to the nearest tenth of a percent. if your answer is 88.1% then write in 88.1).

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.

answerprotecting competitors;

answer///supply is elastic, and demand is inelastic;