Investing and Financial Markets

Question 1

best

Revolt · Accepted Answer

Interest helps them cover business costs.

Question 2

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

Revolt · Accepted Answer

18 percent.

Question 3

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 4

Bank deposits help the nation’s economy by

Revolt · Accepted Answer

giving banks the money to loan and invest.

Question 5

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

Question 6

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

Revolt · Accepted Answer

shareholders, companies, and the economy

Question 7

The Federal Reserve transfers profits from its twelve regional banks to

Revolt · Accepted Answer

the Department of the Treasury.

Question 8

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

Revolt · Accepted Answer

Low interest rates encourage consumers to borrow and spend, while high interest rates encourage saving.

Question 9

A responsibility the Federal Reserve has is to

Revolt · Accepted Answer

loan money to banks during a crisis.

Investing and Financial Markets Answers

More from this Course

TRY EDGENUITY HACKS