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If You Deposit Money in the Bank,in Essence,you Are

Question 23

Multiple Choice

If you deposit money in the bank,in essence,you are


A) a supplier of funds,since the bank simply is an intermediary between those who want to borrow loanable funds and those who are willing to lend them (depositors) .
B) a borrower,since all bank funds are borrowed from the federal government.
C) a supplier of funds,since the bank loans money to the government for daily operations.
D) neither a borrower nor supplier of funds in this case,since you have neither lent nor borrowed money.
E) not a supplier of funds,since mutual funds are the source of lending to firms.

Correct Answer:

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