Banking/Taxes - Wallyball

Banks create profit by taking in deposits, paying _______ on savings accounts, and charging interest on ______.

• interest; loans
• dividends; savings
• interest; investments
• fees; deposits

Banks are _____________ businesses that offer a variety of services to the public

• For profit

• Non profit

• Public

• Private

What are the two most common bank accounts used by American citizens?

What is the main purpose of a checking account?

• To earn high interest on long-term deposits
• To pay off large loans
• To invest money in the stock market
• To provide easy access to funds for daily spending

What is one common feature of a checking account?

• Limited withdrawals
• High interest rates
• Access to funds via debit card
• Minimum deposit of $10,000

Which demographic would benefit most from a banking product with low minimum balances and no monthly fees?

• High-net-worth individuals
• College students
• Business owners
• Retirees

What is the primary goal of a savings account?

• To provide easy access to funds for daily spending
• To save for big purchases, and to earn interest on money while keeping it safe for future use
• To allow for unlimited withdrawals
• To pay utility bills

What is a typical feature of a premium banking account for affluent (wealthy) customers, and why?

What is the primary purpose of FDIC insurance?

• To insure customers won't lose their deposits in case the bank fails
• To protect customers against ATM theft
• To guarantee the bank against bankruptcy
• To insure the bank against customer loans not being paid back

How do banks make money? Explain.