Example$$ Two:$($Select from the$$ drop$-$down menus.$)$

An individual

$,$

deposits his monthly paycheck in a checking account.$$ A$($n$)$

bank

accumulates the funds from many checking accounts and loans money to a person who borrows money to buy a house. The

homeowner

makes monthly mortgage payments to the bank. The bank uses the mortgage payments to cover the checks written by the person with the checking account.

Part $4$

In this example of the cycle of$$ money, the benefit for the lender$$ is:

the convenience of using a checking account to pay bills.

For the$$ bank, the benefit$$ is:

the ability to earn more interest from the homeowner than the interest paid to the lenders.

For the$$ homeowner, the benefit$$ is:

the ability to buy a house before accumulating the necessary funds.

Part $5$

Example$$ Three:$($Select from the$$ drop$-$down menus.$)$

A city

buys a municipal bond for an airport improvement project. The

bond dealer

usually buys a municipal bond from

an individual

$,$

or an investment banker marketing the$$ bond, and the funds from the sale of the bond are delivered to the city minus a fee from the investment banker. The

city

uses the funds to build new facilities at the$$ airport, for example a new parking lot. Once finished the fees received from parking are used to pay back the buyer of the bond with interest.