CE.12de Circular Flow of Money/Financial Institutions

Which option should go in blank 1?

• Financial Institutions

• Households

• Government

• Businesses

Which option should go in blank 2?

• Financial Institutions

• Households

• Government

• Businesses

Which option should go in blank 3?

• Financial Institutions

• Households

• Government

• Businesses

Which option should go in blank 4?

• Financial Institutions

• Households

• Government

• Businesses

Select all of the descriptions of households? (select all that apply)

• Own and sell resources

• Purchase resources

• Purchase products

• Provide public services and goods

• Make products

Select all of the descriptions of businesses (select all that apply).

• Own and sell resources.

• Purchase resources.

• Purchase products.

• Provide public services and goods.

• Make products.

Select all of the descriptions of government? (select all that apply)

• Own and sell resources

• Purchase resources

• Purchase products

• Provide public services and goods

• Make products

Adam put $500 in his savings account last year and has not added any more money to the account. His last bank statement showed his savings account had $515 in it. Which statement best explains why the amount of money in Adam's savings account increased?

• His bank statement reflected a debit from the grocery store.

• The bank deducted the required maintenance fees.

• His employer contributed to his retirement fund.

• The bank paid interest on the money he saved.

How do financial institutions obtain funds to give loans to consumers?

• Local governments give tax revenues to the financial institutions.

• The Federal Reserve makes more money for financial institutions to loan.

• Customers deposit money into the financial institutions.

• Government agencies loan money to the financial institutions.

What do financial institutions do with your deposits?

• Put it in their vault

• Place it in other banks for safe keeping

• Make loans

• Keep it in security boxes