a.
To explain: The possibility of the savings and loans has the higher interest rates or not.
Introduction:
Interest Rate: A rate at which a borrower is ready to pay and depositor is ready to receive the money is known as interest rate.
Normal Yield Curve: A yield curve which shows the low yield for the short-term bonds and high yield for the long-term debt is known as normal yield curve.
Inverted Yield Curve: A yield curve which shows the high yield for the short-term bonds and low yield for the long-term debt is known as inverted yield curve.
b.
To explain: The beneficial situation between to keep the mortgages or to sell out.
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