Which of the Following Is Not a Scenario in Which

question 9

Multiple Choice

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.

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Definitions:

Liability Insurance

Insurance coverage that protects against claims arising from injuries or damage to other people or property.

Traceable Fixed Expenses

Fixed costs that can be directly linked to a particular segment, product, or department within a business.

Common Fixed Expenses

These are expenses that do not vary with production volume or sales volume, shared across different segments of a business.

Differential Cost

The difference in total cost that will result from selecting one alternative over another in decision-making situations.