45
QuizMultiple Choice

The American Market Economy — Test

Question 45 • Economics

What types of investments do banks use to make a profit? Choose three correct answers.

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

Explanation

Banks can earn profit by lending money and collecting interest, so issuing loans is an investment activity. They may also buy stocks and bonds, which can generate income or increase in value, and buy the rights to loans so they can collect the payments. Opening checking accounts is a banking service, not an investment used directly to make a profit.

AI-written and checked against the verified answer.

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