Banks in the U.S. Economy

How do banks make a profit?

• a. Interest

• b. Customer Service

• c. Selling toys

• d. Buying cars and houses

Which is the best description of a loan?

• a. Borrowing money without repaying it

• b. borrowing money and keeping it

• c. Borrowing money and repaying it with interest

• d. None of the above

3. Which is the best description for a savings account?

• a. Somewhere risky to store money

• b. Lending money to a stranger

• c. Borrowing money for a car

• d. Somewhere to store money for an emergency or large purchase

Banks make it possible for people and businesses to purchase what they need without having all of the money by offering loans.

• a. True

• b. False

money that is placed in an account at a bank ​ ​ (a)  

• deposit
• bank
• loan
• savings account
• checking account

an institution that receives deposits and makes

loans​ (a)  

• bank
• loan
• savings account
• checking account
• deposit

an account to use for daily spending​ (a)  

• checking account
• bank
• loan
• savings account
• deposit

a safe account to store money​ (a)  

• savings account
• bank
• checking account
• deposit
• loan

money that is borrowed, then paid back with

interest​ (a)  

• loan
• bank
• savings account
• checking account
• deposit

Banks provide an important role in the economy by offering a safe and stable way to store and borrow money.

• True

• False