A Depository Institution Is a Firm That Takes Deposits from ________

question 287

Multiple Choice

A depository institution is a firm that takes deposits from ________ and makes loans to ________.

• A) households and firms; other households and firms
• B) firms only; households only
• C) households only; firms only
• D) firms only; other firms only

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Definitions:

Behavior

The actions or reactions of an individual or system in response to external or internal stimuli.

Culture

The set of shared attitudes, values, goals, and practices that characterizes an institution, organization, or group.

Total Surplus

Total surplus is the sum of consumer surplus and producer surplus in a market, representing the total net benefit to society from trading in the market.

Trade

The act of buying, selling, or exchanging goods and services between people or countries, encompassing both domestic and international transactions.