Financial Institutions and Banking Answers
9 verified answers
1
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What is the relationship between the Fed and other banks?
T
The Fed sets the salaries for employees at every bank in the nation.T
The Fed decides who is eligible for loans and who is not at various banks.T
The Fed monitors all deposits and loans at local banks to be sure they’re making a profit.T
The Fed makes sure that banks follow rules, and it loans money to banks that are in a crisis.2
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most likely
T
The employee will advise Juana to open a checking account so she can easily pay her bills.T
The employee will advise Juana to open a savings account to earn interest on her money.T
The employee will advise Juana to get a debit card so she has money for college expenses.T
The employee will advise Juana to apply for a loan so she can begin to pay for college.3
Review the chart.
P
People Spend LessI
Inflation DecreasesM
Money Supply DecreasesB
Businesses Create Jobs4
most likely
a
autos
studentm
mortgagec
commercial5
Why did the US Congress create the Federal Reserve System in 1913?
t
to establish a central bank where American citizens could deposit their moneyt
to establish a central bank to store the money used by the federal governmentt
to establish a central bank that would help smaller banks survive during economic crisest
to establish a central bank that would provide loans for people who were denied them at local banks6
Review the photograph.
W
When mortgage interest rates go down, banks stop making loans.W
When mortgage interest rates go down, banks make more money.I
It’s easier for people to buy a new home when mortgage interest rates are down.I
It’s more difficult for people to buy a new home when mortgage interest rates are down.7
most
I
It was established by Black businessmen to serve their community.I
It was the first banking institution to charge interest for borrowing money.I
It was established to service large corporations in the North Carolina area.I
It was the first to be insured by the Federal Deposit Insurance Corporation.8
Why does the Fed sometimes increase interest rates?
t
to help more people get loans and become borrowerst
to speed up the economy and help it grow quicklyt
to prevent banks from making profits that are too larget
to slow inflation by stopping the economy from growing too fast9
Tran got a loan of $10,000 from the bank to help pay for his new car. He agreed to pay $800 in interest for the use of this money.Which equation shows the interest rate that Tran is paying?
8
800 ÷ 10,000 = .081
10,000 ÷ 800 = 12.51
10,000 – 800 = 9,2001
10,000 + 800 = 10,80010
What is the money supply of the United States?
A
the total amount of money in the US economyB
the sum of all deposits being held by US banksC
the profits made by banks from the interest payment on loansD
the total amount of money deposited within the central bankDid you find these answers helpful?
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