A Loan Is A

question 27

Multiple Choice

A loan is a:

• A) liability for the lender and an asset for the borrower.
• B) physical asset that is traded in financial markets.
• C) claim on a bank that obliges the bank to provide funds to a lender.
• D) liability for the borrower and an asset for the lender.

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Definitions:

Producer Surplus

The difference between the amount a producer is willing to accept for a good or service and the actual amount received by them when the good or service is sold.

Total Surplus

A combination of consumer and producer surplus that signifies the overall net advantage to society from the consumption and production of a good or service.

International Trade

involves the exchange of goods and services across international borders or territories.

Import/Export

The exchange of goods, services, and capital between different countries or territories, enhancing global economic interdependence.