Functions of Banks and Federal Reserve

What are the two main functions of banks?

• taking deposits

• stealing your money

• giving out loans

• give your money to others

What is the Federal Reserve's role?

• keeping banks stable and controlling the money supply

• keeping banks stable and giving money to the rich people

• Setting tax rates and government spending policies

• offering loans to individual citizens and businesses

What is fractional reserve banking?

• a system where banks only keep a small percentage of customer deposits on hand and loan out the rest

• a system where banks only accept large deposits from wealthy customers

• a system where banks do not keep any customer deposits on hand

• a system where banks keep all customer deposits on hand at all times

What protects your deposits in a bank up to $250,000?

• Federal Deposit Insurance Corporation (FDIC)
• Federal Reserve System (FRS)
• Consumer Financial Protection Bureau (CFPB)
• National Credit Union Administration (NCUA)

What is the Federal Reserve's main purpose?

• To set tax rates and government spending levels.
• To oversee the stock market and corporate mergers.
• To manage monetary policy and ensure financial stability.
• To regulate international trade agreements.

What is the Federal Reserve also known as?

• The Central Bank
• The Treasury Department
• The Economic Council
• The Fed