What is the primary role of banks in the housing transaction described?
The Money View: The Inherent Instability of Credit

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1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
To provide insurance for the house
To facilitate the transfer of ownership
To manage the mortgage and deposit accounts
To set the price of the house
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
In the described transaction, what is the mortgage considered for the buyer's bank?
A deposit
An asset
A liability
A loan
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
How is the initial funding for the mortgage typically obtained?
By issuing bonds
By borrowing in the overnight federal funds market
By using personal savings
By selling stocks
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the key link between the expansion of money and credit in the context of the housing market?
The role of government policies
The stock market
The real estate agencies
The interbank funding market
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
During the recent financial crisis, which market was more crucial than the interbank market?
The retail market
The stock market
The wholesale money market
The real estate market
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