Banking

Question 1

best

Revolt · Accepted Answer

Interest helps them cover business costs.

Question 2

What explains the difference between retail and commercial banking?

Revolt · Accepted Answer

Retail banks loan money to small businesses, while commercial banks loan money to large corporations.

Question 3

Read the graph that displays mortgage interest rates between 1978 and 1983.In what year did consumers get the best deal on a mortgage?

Revolt · Accepted Answer

1978

Question 4

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

Revolt · Accepted Answer

Storing and holding money; Lending money; Investing in the economy

Question 5

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

Revolt · Accepted Answer

buying stocks and bonds; buying several properties; buying the rights to loans

Question 6

Which example best describes how a bank injects money into the economy?

Revolt · Accepted Answer

A bank approves a loan for a customer.

Question 7

A responsibility the Federal Reserve has is to

Revolt · Accepted Answer

loan money to banks during a crisis.

Question 8

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

Revolt · Accepted Answer

dropped, which led to more home starts.

Question 9

Which banker would a software company most likely visit for help to raise large amounts of capital to acquire, or buy out another company?

Revolt · Accepted Answer

an investment banker

Banking Answers

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