Multiple Choice
Suppose Mary saves enough funds for a down payment on a house. When she buys her home, she withdraws the savings to make the down payment and borrows $200,000 on a mortgage loan. Which statement accurately describes Mary's interactions with her bank?
A) Mary is the intermediary or connection between the bank and her house.
B) Mary's house is the intermediary between Mary and the bank.
C) Mary is supplying loan funds and cash to the homeowner and demanding savings from her bank.
D) Mary goes from being a supplier to demanding loanable funds, with the bank acting as an intermediary.
Correct Answer:
Verified
Correct Answer:
Verified
Q173: The yield on a perpetuity bond that
Q174: Which of these would cause the equilibrium
Q175: Checking account balances are<br>A) part of M1
Q176: The most common type of short-term debt
Q177: To increase earnings, savers must either choose
Q179: Because of the compounding effect, a large
Q180: What are the conditions for a commodity
Q181: If interest rates increase, people want to
Q182: If the government offers firms investment tax
Q183: The direct exchange of goods and services