Universal Bank pays 7% interest compounded annually on time deposits. Regional Bank pays 6% compounded quarterly. 1. Based on EFFECTIVE interest rates, in which bank would you prefer to deposit your money for one year

Which of the following makes a true statement about the relationship between government and financial institutions? government and financial institutions do not interact with each other. financial institutions like the u.s. treasury must approve increases in the government deficit. government can pass laws to limit what financial institutions can charge in interest and fees. financial institutions like local banks must approve interest rates set by the federal reserve.