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:
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