Identify whether you should use an average cost of bank fund

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Identify whether you should use an average cost of bank funds or a marginal cost of funds in the following situations.

a. Setting the rate on a new loan

b. Evaluating the profitability of a long standing customer's relationship

c. Calculating the bank's income tax liability

d. Deciding whether to build a new building or refurbish the old one

e. Deciding whether to advertise the bank's jumbo CDs or borrow funds in the Eurodollar market

Reference no: EM13883066

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