If You Deposit Money in the Bank,in Essence,you Are

question 116

Multiple Choice

If you deposit money in the bank,in essence,you are

• A) a supplier of funds,since the bank simply is an intermediary between those who want to borrow loanable funds and those who are willing to lend them (depositors).
• B) a borrower,since all bank funds are borrowed from the federal government.
• C) a supplier of funds,since the bank loans money to the government for daily operations.
• D) neither a borrower nor supplier of funds in this case,since you have neither lent nor borrowed money.
• E) not a supplier of funds,since mutual funds are the source of lending to firms.

---

Definitions:

Balance Sheet

An accounting report displaying the financial condition of a business, including what it owns, owes, and the equity held by shareholders on a given date.

Leases

A contractual arrangement where a lessee (user) pays the lessor (owner) for the use of an asset for a specified period of time.

FASB

Financial Accounting Standards Board. The body within the accounting profession that sets rules and standards for the form and content of financial statements.

Yields

The earnings generated and realized on an investment over a particular period, expressed as a percentage of the investment's cost.