Purpose of Banks

What does the word DEPOSIT mean in regards to money and banks.

• to put money or other valuables in a safe place
• to spend
• to save
• to take money or valuables out of a safe place

Which situation shows a financially responsible citizen?

•  Purchasing an expensive automobile you CANNOT afford.
• Only buying items that you CAN afford
• Throwing money out the window.
• Hiding your money under your mattress. 

When you pay back a loan, you not only pay the amount you borrowed, you also pay it back with _____________

• Interest

• Deposit

• Withdrawal

• Checking

Which of the following will a bank provide?

• Keep your money safe
• Pay your bills
• Put money into your account
• Balance your checkbook

Ryan currently has $5,000 in his savings account. If he puts $100 into his savings each month for the next year, how much money will he have saved?

• $6,000

• $1,200

• $6,200

• $7,200

Which of the following is a tool used to manage money?

• record keeping

• budgeting

• earning income

• saving income

Dara makes bracelets and sells them in her shop. Which is a fixed expense for Dara’s business?

• the cost of the beads

• the cost of the string

• the cost of advertising

• rent for her shop

When you take the amount of money earned and subtract your expenses you are finding the...

• fixed income
• profit
• savings
• taxes

What is the purpose of financial institutions such as banks, credit unions, and savings and loan associations?

• Keep money safe

• Lend money to people and businesses

• None of these

• Keep money safe AND lend money to people and businesses

Because the amount of money I spend on gas depends on the price of gas and how much I use, it is considered a...

• Fixed Expense
• Variable Expense
• Income