If a Real Estate Developer Borrows $100,000 from a Bank

question 55

Multiple Choice

If a real estate developer borrows $100,000 from a bank and ends up paying back $120,000,the $100,000 represents the:

• A)collateral.
• B)interest.
• C)down payment.
• D)principal.
• E)trade credit.

---

Definitions:

Permanent Benefits

Long-term advantages or income received from an investment, job, or government policy.

Potential Benefits

The possible advantages or gains that could be realized from a particular action or investment.

Little Bit of Inflation

A slight increase in the general level of prices which can indicate a healthy economy by encouraging spending and investment.

Federal Reserve

The central banking system of the United States, which regulates banks, manages the country's money supply, and aims to ensure economic stability.