What do Banks do?

The bank acts as

• Saver

• Borrower

• Middleman

How does a Bank attract savers?

• By paying interest on deposits

• By saving the deposits

• By taking care of their deposits

What do Banks do with loans?

• Charge an interest

• Can spread the risk

• Can pay to the savers

What is the name of the money held by the Bank?

• Reserve

• Loan

• Deposit

One of the 2 big functions of the Bank is

• Evaluate business ideas to see to whom it’s worth lending.

• Charge an interest

• Save money

Why do Banks spread an investment’s risk among many different projects?

• Because if a few loans go bad, it won´t bankrupt the bank

• Because they need to Charge an interest

• Because its their business