Paige and Bella 3/12/25

What is the main purpose of private financial institutions?

• To store money in vaults

• To facilitate exchange of money between savers and borrowers

• To print new money

• To create government policies

Which of the following are examples of private financial institutions?

• Post offices and libraries

• Schools and hospitals

• Banks and credit unions

• Parks and museums

What do financial institutions do with the deposits they receive?

• Keep them locked away forever

• Use them only for bank employee salaries

• Distribute them to charity

• Make loans to people and businesses

How do financial institutions encourage people to save money?

• By charging fees on all accounts

• By paying interest on deposits

• By limiting withdrawals

• By requiring minimum balances

What is financial capital?

• The building where a bank is located

• The number of employees at a bank

• Money used to start or grow businesses

• The bank's computer system

Which service do private financial institutions provide to businesses?

• Free office space

• Employee training

• Marketing advice

• Money for growth and expansion

What happens when financial institutions receive deposits?

• The money is immediately given to charity

• The money is converted to gold

• The money is used to help other borrowers

• The money is destroyed

How do financial institutions help the economy?

• By keeping all money in one place

• By connecting people who save with people who need loans

• By preventing people from spending money

• By closing on weekends

What is one benefit of saving money in a financial institution?

• Your money earns interest over time

• You get free groceries

• You receive automatic job offers

• Your money stays the same amount forever

Which statement about financial institutions is TRUE?

• They only help rich people

• They only operate in big cities

• They help provide financial capital to businesses

• They never charge any fees