Personal Finance Play: There's No Business Like Bank Business

What are the benefits of saving money in a bank?

What are the steps in making a savings deposit?

What is interest?

How do banks get their currency and coins?

What is the benefits of saving money in a bank for the bank?

• The bank can use your money for loans to others

• The bank loses money

• The bank has to pay more interest

• The bank cannot use your money

Answer explanation

The correct choice is that the bank can use your money for loans to others. When you deposit money, banks lend it out to borrowers, earning interest, which is a primary way they generate profit.

What does Susie suggest Sam should do with his money?

• Spend it on a new toy

• Buy a basketball

• Save it

• Buy candy

Answer explanation

Susie suggests that Sam should save his money, indicating that saving is a better choice than spending it on toys, basketballs, or candy.

What solution does Susie offer for saving money?

• Hide it in a secret place

• Spend it wisely

• Take it to the bank and open an account

• Give it to a friend for safekeeping

Answer explanation

Susie suggests taking money to the bank and opening an account as a secure way to save it. This option ensures the money is protected and can earn interest, unlike hiding it or giving it to a friend.

What does Susie propose to do to convince Sam about saving at a bank?

• Show him a video

• Take him to Big Bucks Bank

• Give him a brochure

• Explain the benefits in detail

Answer explanation

Susie proposes to take Sam to Big Bucks Bank, allowing him to see the bank's benefits firsthand, which is more convincing than just showing a video or giving a brochure.

What does Sam call his twenty dollars?

• Twenty bucks

• Twenty smackers

• Twenty coins

• Twenty notes

Answer explanation

Sam refers to his twenty dollars as 'twenty smackers,' which is a common slang term for money. The other options do not accurately reflect this colloquialism.

What does Sam think about saving in a bank?

• It's the way to go

• It's unnecessary

• It's too complicated

• It's risky

Answer explanation

Sam believes that saving in a bank is beneficial, as indicated by his view that "It's the way to go." This suggests he sees it as a positive and practical choice for managing finances.