1. In financial market transactions involving financial intermediaries, the financial intermediary receives a claim on the user of the funds, while the investor or saver receives a claim on the intermediary. True or False

2. Jeff and Teara Washington have just financed a home and make annual payments of $19,515.43. If the mortgage has a stated interest rate of 5%, and will be paid off in 30 years, how much did the Washington's pay for their new home if the bank financed 100% of the funds needed to make the purchase?

A. $300,000

B. $549,276.08

C. $153,724.51

D. Cannot be determined from that information provided

E. None of the above answers