Banking Answers

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I
Interest enables them to control the economy.
I
Interest helps them to satisfy customers.
I
Interest enables them to stockpile money.
I
Interest helps them cover business costs.
3

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

p
people’s bank.
c
central bank.
w
world bank.
r
retail bank.
4

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

A
A bank opens a savings account for a customer.
B
A bank approves a loan for a customer.
C
A bank buys a company’s rapidly growing stock.
D
A bank buys property in a bustling business district.
5

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

b
by deciding how much banks must keep in reserve
b
by overseeing the nation’s payment system
b
by supervising the loan process at banks
b
by printing money for distribution to banks
b
by responding quickly to banking crises that occur
b
by auditing banks based on current regulations
6

Which is the correct order of entities that benefit when banks make a profit?

A
employees, shareholders, and the economy
B
shareholders, shoppers, and the economy
C
employees, companies, and the economy
D
shareholders, companies, and the economy
7

The main role of banks in the nation’s economy is to

A
store, lend, and invest money.
B
store, lend, and borrow money.
C
store, lend, and distribute money.
D
store, lend, and approve money.
10

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

A
opening checking accounts
B
starting new businesses
C
buying stocks and bonds
D
buying several properties
E
issuing loans to all customers
F
buying the rights to loans

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Banking Answers — MA-US History II CR