Banking — Unit test Answers

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

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

Which best explains why banks consider interest on loans to be important?

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

Banks pay interest to customers through a

How do central banks govern the banking industry? Select four options.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

Bank deposits help the nation’s economy by

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

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

A responsibility the Federal Reserve has is to