It is not possible for an economic unit to be a lender and a borrower simultaneously.

Name: It is not possible for an economic unit to be a lender and a borrower simultaneously.
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Question

Quizplus · Accepted Answer

An economic unit cannot be a lender and a borrower simultaneously because lending and borrowing are two different sides of a transaction. A lender provides funds to a borrower, while a borrower receives funds from a lender. Therefore, it is not possible for an economic unit to be both a lender and a borrower at the same time.

It Is Not Possible for an Economic Unit to Be