Unit 2- Lesson 2 and 3 Banks andLoans

A bank account is the record a bank keeps to know the amount of someone has given them to hold.

• goods

• money

• services

• resources

Interest is the money paid to customers for keeping their money at a bank.

• true

• false

Interest is what the bank charges customers when they ____ money.

• loan

• spend

• deposit

• borrow

Putting money into a bank account is called a _____ and taking money out of a bank account is called a ______.

• loan, deposit

• deposit, loan

• withdrawal, deposit

• deposit, withdrawal

Using money to pay for goods and services is called

• saving

• loaning

• spending

• borrowing

______ is putting money away for later use.

• Saving

• Loaning

• Borrowing

• Withdrawing

When a bank lends money to people who want to borrow, the transaction is called a

• loan

• deposit

• payment

• withdrawal

Banks use the money customers deposit in savings accounts to make _______ to businesses and people.

• gifts

• loans

• offers

• repayments

Borrowers have an obligation to repay the amount of a loan plus ________.

• profit

• taxes

• income

• interest

Where do banks get the money to pay interest to savers?

• From the government budget

• From taxes charged to citizens

• From other savers' bank accounts

• From the interest they charge borrowers