Joe Has Just Borrowed $5,000 from His Aunt in Order

question 4

Multiple Choice

Joe has just borrowed $5,000 from his aunt in order to make a down payment on a car.This borrowing transaction is an example of

• A)indirect intermediation.
• B)direct intermediation.
• C)external intermediation.
• D)market transaction.

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Definitions:

Hourly Rate

The amount of money paid for each hour of work, commonly used for calculating wages of part-time or contract employees.

Gross Pay

The total amount earned by an employee before any deductions or taxes are applied.

FICA-OASDI

Federal Insurance Contributions Act - Old Age, Survivors, and Disability Insurance, a U.S. payroll tax to fund Social Security.

State Unemployment Tax

A tax imposed by state governments on employers to fund unemployment insurance benefits for workers who lose their jobs.