Banks in the Economy

What is the purpose of a bank? (You can choose more than one response on this one!)

• hold your money

• help you borrow money

• pay you for using your money to help others

• help you save your money

What is the first step in opening a savings account?

• Fill out an order form

• Ask the teller for your money.

• Open an account with your parent.

• Fill out a withdrawal slip.

After you have a savings account, what is the first step in making a withdrawal?

• Demand they give you all of your money.

• Fill out a withdrawal slip, and sign it with your parent.

• Fill out a deposit slip.

• Ask your friends if you can borrow money.

When banking, what does "interest" mean?

• money paid for the use of borrowing that money

• something grabs your attention

• money a business makes after it pays for the cost of operating

• money withdrawn from your account

What is "profit" for a business?

• money paid for the use of borrowing that money

• the name of a teacher at Westgate

• the money a business earns after it pays the costs of operating

• opening an account at the bank

At a bank, what are "reserves?"

• calling ahead to get a teller to help you

• saving a seat for someone at the bank

• a part of the deposit that a bank must keep and NOT loan out to customers

• a fruit jam or jelly you can put on bread

Why are reserves important at a bank?

• so the bank has enough money to pay out when customers want to withdrawal their money.

• so the bank looks important to the other banks in the neighborhood

• so you can deposit money and the bank can loan out your money to other customers

• so your toast or bread tastes better

What are Federal Reserve Banks?

• banks that make reservations for restaurants in your area

• places that print dollars

• places that make coins

• banks that store money so that they can ship it to other banks that need it when they are running low

Where is paper money printed?

• Dunder Mifflin Paper Company

• U.S. Mint

• Bureau of Engraving and Printing

• Federal Express

Where are coins made?

• U.S. Mint

• Jewelry stores

• Bureau of Engraving and Printing

• Bureau of Money Making