Assuming that our role is the head of the bank, it becomes important to figure out the cost of funding the loan. The problem we are solving is comprised of three parties (or as we call them, agents)—the bank, depositors, and borrowers. To begin with, we assume that there is only one bank but many depositors and borrowers. The depositors and borrowers will be created through randomized generated data.
When it comes to simulating different behaviors for these parties in machine learning, each of these is called an agent or an instance of an object. We need to create thousands of agents, with some being depositors, some being borrowers, one being a bank, and one being a market. These represent the collective behavior of competing banks. Next, we will describe the behavior of each type of agent.
Let's say we assume the role of treasurer of the bank or head of the treasury. The job of the head of the treasury is...