Functions of Banks

What is one of the primary functions of a financial establishment like a bank?

• Providing internet services

• Accepting money deposited by customers

• Selling groceries

• Offering legal advice

Which type of bank account typically allows for numerous transactions and everyday use?

• Savings account

• Bonds

• Checking Account

• Certificates of Deposit (CDs)

Which of the following is not a function of a bank related to lending?

• Mortgage (home loan)

• Auto financing (car loan)

• Student loans

• Health insurance

Where do average Americans usually bank?

• Credit Unions

• Commercial Banks

• Investment Banks

• Online Banks

Where do the bankers bank?

• The Federal Reserve

• The World Bank

• Commercial Banks

• Credit Unions

What is the primary function of the institutions like Wells Fargo, Bank of America, and SunTrust ?

• Providing loans to the government

• Facilitating withdrawals and deposits

• Conducting foreign exchange

• Issuing new currency

What is the general purpose of central banking?

• To provide consumer loans

• To enact monetary policy, oversee the banking system, and regulate the money supply

• To print currency notes

• To collect taxes

What is the nickname for the Federal Reserve in the United States?

• The Treasury

• The Mint

• The Fed

• The Bank

Why was the Federal Reserve created?

• To fund the World War

• To promote international trade

• To respond to banking panics/runs/failures

• To establish a new currency

Where is the Central Bank of the United States, also known as the Federal Reserve, located?

• New York, N.Y.

• Washington D.C.

• Los Angeles, C.A.

• Chicago, I.L.