Banking 101

All of the following are ways Banks make money EXCEPT

• Interest charged on loans

• Fees on products and services

• Investments made by the bank

• Donations made by citizens

Banks enable point of purchase transactions through products like debit cards.

• True

• False

When you borrow money from a bank to purchase a new car, you get paid interest from the bank.

• True

• False

The FDIC helps make banking safer by

• Supervising and prosecuting corrupt bankers

• Promising a minimum amount of interest earned on savings accounts

• Insuring deposits up to $250,000 against bank failure

Banking is a purely American institutions (i.e. people in other countries don't use banks).

• True

• False

When you make a deposit into a savings account at a bank, you usually get paid interest.

• True

• False

Banking is something you only need to do once you've made a lot of money.

• True

• False

Through loans like auto loans and mortgages, banks enable consumers to make large purchases without having to save 100% of the purchase price.

• True

• False

When you deposit money into bank, the bank will do all of the following EXCEPT

• use your money to fund loans to other consumers

• use your money to make investments

• do nothing with your money except hold it per FDIC rules

Banks can charge transaction and/or account fees as another source of income to the bank.

• True

• False