Which of the following is not a scenario in which a bank could serve as an intermediary between borrowers and savers?
A) Tom takes out student loans to cover the cost of going to school to learn how to be a welder.
B) Danika takes a job with a salary that is greater than her living expenses, so she starts looking into different options for a 401(k).
C) Jan is hunting for an apartment close to work that costs about 30 percent of her take-home pay.
D) Chris is looking to buy a new car but does not have the cash on hand to pay for it outright.

Question

Quizplus · Accepted Answer

Finding an apartment that fits within one's budget does not involve borrowing or lending money, so there is no need for a bank to serve as an intermediary between borrowers and savers in this scenario. The other options all involve borrowing or investing money, which can be facilitated by a bank as an intermediary.

Which of the Following Is Not a Scenario in Which