Final answer:
Durability is the ability of an item to last a long time, points are fees paid as a percentage of a loan, quality is the value a person gets from an item over time, and closing costs are fees for arranging a mortgage. Loans are bank assets and can be bought and sold in primary and secondary loan markets.
Step-by-step explanation:
Matching the terms with their definitions:
C. Durability: Ability of an item to last a long time.
B. Points: Fees paid to a lender and computed as percentage points of a loan.
A. Quality: The amount of use that a person gets from an item over time and the value a person places on that use.
D. Closing Costs: Fees involved in arranging for a mortgage.
Loans represent assets for banks: when a family takes out a mortgage loan for a house to be repaid over 30 years, that creates a legal obligation for the borrower to make payments over time. Banks may issue loans and charge handling and processing fees, later selling these loans to other financial institutions. The primary loan market is where financial institutions make loans to borrowers, and the secondary loan market is where they buy and sell these loans.