Usborne Money Reading for Beginners - How Banks Create Money

Which sentence is correct?

• Banks lend money that they already have.

• Banks create money to lend people.

Tags

CCSS.RF.3.3B

CCSS.RF.3.3C

CCSS.RF.3.3D

CCSS.RF.4.3A

CCSS.RF.5.3A

In Jack's example, the bank created money on a ____ to lend him.

Tags

CCSS.RI.4.7

CCSS.RI.5.7

CCSS.RI.6.7

CCSS.RL.4.7

CCSS.RL.5.7

When Jack pays back his ​ (a)   , the bank will ​ (b)   the money that they ​ (c)   .

• loan
• cancel out
• created
• computer
• cash

Tags

CCSS.RI.5.4

CCSS.RI.6.4

CCSS.RL.5.1

CCSS.RL.5.4

CCSS.RL.6.4

How many percent of banks' money has been created by the computer like this?

• 50%

• 70%

• 97%

• 100%

Tags

CCSS.6.RP.A.3C

Who created cash?

• Banks

• People

• Governments

• Printers

People worldwide has ___ decided to take out their deposits all at once.

Tags

CCSS.RF.3.3B

CCSS.RF.3.3C

CCSS.RF.3.3D

CCSS.RF.4.3A

CCSS.RF.5.3A

A ​ (a)   happens when lots of people withdraw their deposits all at once.

• bank run
• bank walk
• banking

Tags

CCSS.RI.11-12.10

CCSS.RI.6.10

CCSS.RI.7.10

CCSS.RI.8.10

CCSS.RI.9-10.10

If a bank runs out of cash, it still works well as normal.

• True.

• False

Tags

CCSS.RI.4.8

CCSS.RI.5.8

CCSS.RI.6.1

CCSS.RI.6.8

CCSS.RL.6.1

Bank runs can be prevented by....

• Borrowing cash from other banks.

• Setting limits for how much money people can withdraw each day.

• Do not give people's money back in cash.

• Insuring deposits

Insuring deposits means ___ promise to pay depositors their money if the bank can't.

Tags

CCSS.RI.3.5

CCSS.RI.4.5

CCSS.RI.5.5

CCSS.RI.6.5

CCSS.RI.7.5