Banking in the United States

When was the first bank of the United States created?

• 1791

• 1816

• 1913

• 1930

What major event led to the creation of our current national banking system, the Federal Reserve, in 1913?

• The Great Depression

• The Civil War

• The expiration of the second bank's charter

• A stock market crash

How much money can banks loan out?

• Up to 10% of what they take in.

• Up to 90% of what they take in.

• Up to 5% of what they take in

• Up to 50% of what they take in.

What is another name for a bank?

• community banking institutions

• community credit institutions

• private financial institution

• Interest banking

What is the PRIMARY way banks make their profits?

• By charging fees for using ATMs

• By investing in the stock market

• By adding an interest charge in every monthly payment a borrower makes

• By government subsidies

What happened to many banks during the Great Depression?

• They merged with larger banks.

• They were bailed out by the government.

• About 9,000 banks failed because people lost their jobs and could not pay back their loans.

• They all became part of the Federal Reserve system.

What is the main advantage of using credit unions over banks?

• Credit unions are for-profit organizations.

• Credit unions are owned by their members.

• Credit unions charge higher interest rates.

• Credit unions do not allow individual accounts.

Match the following

• interest

• Using money that isn't in your bank and you must pay back at the end of the month or in installments.

• Credit

• Using money that is in your bank but you don't exchange cash you use a card and the money is deducted from your account immediately.

• Debit

• Money that banks pay you to keep your money in a savings account at the bank.