Banking Answers

What types of investments do banks use to make a profit? Check all that apply.opening checking accountsstarting new businessesbuying stocks and bondsbuying several propertiesissuing loans to all customersbuying the rights to loans

Read the graph that displays interest and total payments on a loan.Banks make the most money and take the most risk with an interest rate of

Banks pay interest to customers through a

The Federal Reserve transfers profits from its twelve regional banks to

Bank deposits help the nation’s economy by

Which are the roles of a bank? Check all that apply.Storing and holding moneyMaking purchases to create profitsLending moneyInvesting in the economyCreating money for the economy

Read the graph about mortgage interest rates and housing starts between 1978 and 1983.A conclusion that can be drawn from both graphs by looking at 1983 is that interest rates

The Federal Reserve Bank of the United States is also known as the

How do central banks govern the banking industry? Check all that apply.by deciding how much banks must keep in reserveby overseeing the nation’s payment systemby supervising the loan process at banksby printing money for distribution to banksby responding quickly to banking crises that occurby auditing banks based on current regulations

Which statement best describes the effects of low and high interest rates on the economy?