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NEW QUESTION: 1
When BGP route load balancing is configured, and there are two load balancing routes whose first eight BGP attributes described in BGP route selection rules and the AS_Path attribute are the same, how will the two routes prefix be advertised to neighbors?
A. The two routes will not be advertised to other BGP peers.
B. One optimal route is selected from the two routes and then advertised to IBGP peers.
C. One optimal route is selected from the two routes and then advertised to other BGP peers.
D. The two routes will be both advertised to other BGP peers.
NEW QUESTION: 2
An entity obtained a short-term bank loan of US $250,000 at an annual interest rate of 6%. As a condition of the loan, the entity is required to maintain a compensating balance of US $50,000 in its checking account. The entity's checking account earns interest at an annual rate of 2 %. Ordinarily, the entity maintains a balance of US $25,000 in its checking
account for transaction purposes. What is the effective interest rate of the loan?
C. 5.80% D 6.66%
The US $50,000 compensating balance requirement is partially satisfied by the entity's practice of maintaining a US $25,000 balance for transaction purposes. Thus, only US $25,000 of the loan will not be available for current use, leaving US $225,000 of the loan usable. At 6% interest, the US $250,000 loan would require an interest payment of US $15,000 per year. This is partially offset by the 2% interest earned on the US $25,000 incremental balance, or US $500. Subtracting the US $500 interest earned from the US $15,000 of expense results in net interest expense of US $14,500 for the use of US $225.000 in funds. Dividing US $14,500 by US $225,000 produces an effective interest rate of 6.44%.