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Banks in the Economy

Total questions: 15

Worksheet time: 30mins

Name
Class
Date
1.

What is the purpose of a bank? (You can choose more than one response on this one!)

a)

hold your money

b)

help you borrow money

c)

pay you for using your money to help others

d)

help you save your money

2.

What is the first step in opening a savings account?

a)

Fill out an order form

b)

Ask the teller for your money.

c)

Open an account with your parent.

d)

Fill out a withdrawal slip.

3.

After you have a savings account, what is the first step in making a withdrawal?

a)

Demand they give you all of your money.

b)

Fill out a withdrawal slip, and sign it with your parent.

c)

Fill out a deposit slip.

d)

Ask your friends if you can borrow money.

4.

When banking, what does "interest" mean?

a)

money paid for the use of borrowing that money

b)

something grabs your attention

c)

money a business makes after it pays for the cost of operating

d)

money withdrawn from your account

5.

What is "profit" for a business?

a)

money paid for the use of borrowing that money

b)

the name of a teacher at Westgate

c)

the money a business earns after it pays the costs of operating

d)

opening an account at the bank

6.

At a bank, what are "reserves?"

a)

calling ahead to get a teller to help you

b)

saving a seat for someone at the bank

c)

a part of the deposit that a bank must keep and NOT loan out to customers

d)

a fruit jam or jelly you can put on bread

7.

Why are reserves important at a bank?

a)

so the bank has enough money to pay out when customers want to withdrawal their money.

b)

so the bank looks important to the other banks in the neighborhood

c)

so you can deposit money and the bank can loan out your money to other customers

d)

so your toast or bread tastes better

8.

What are Federal Reserve Banks?

a)

banks that make reservations for restaurants in your area

b)

places that print dollars

c)

places that make coins

d)

banks that store money so that they can ship it to other banks that need it when they are running low

9.

Where is paper money printed?

a)

Dunder Mifflin Paper Company

b)

U.S. Mint

c)

Bureau of Engraving and Printing

d)

Federal Express

10.

Where are coins made?

a)

U.S. Mint

b)

Jewelry stores

c)

Bureau of Engraving and Printing

d)

Bureau of Money Making

11.

How can you make money on your savings account?

a)

You draw pictures of money and deposit it

b)

Your money just grows in the bank on its own

c)

The bank pays you to thank you for your deposit

d)

The bank pays you to use some of your money to loan to others

12.

How does the bank make extra money on loans?

a)

The bank charges people for borrowing money, called "interest."

b)

The bank takes money from your account.

c)

The bank asks other banks for donations.

d)

The bank just gets more money printed.

13.

A business earned 2,000 dollars after it paid all of its bills for running the company. This $2,000 is called,

a)

lucky

b)

unfortunate

c)

profit

d)

interest

14.

When a bank needs to pay its customers their money, it can use its,

a)

reserves

b)

interest

c)

profit

d)

magic wand

15.

What is the name of the bank that watches over all the other banks?

a)

Daddy Bank

b)

The Federal Reserve Bank (The Fed)

c)

The Presidential Bank

d)

The USA Bank