Banking example #86637

24 February 2023
5 (101 reviews)
10 test answers

Unlock all answers in this set

Unlock answers (6)
question
The Federal Reserve transfers profits from its twelve regional banks to
answer
the Department of the Treasury.
question
Bank deposits help the nation's economy by
answer
giving banks the money to loan and invest.
question
Which best explains why banks consider interest on loans to be important?
answer
Interest helps them cover business costs.
question
How do central banks govern the banking industry? Check all that apply.
answer
*by deciding how much banks must keep in reserve *by overseeing the nation's payment system *by responding quickly to banking crises that occur *by auditing banks based on current regulations
question
The Federal Reserve manages the nation's currency and money supply by
answer
setting interest rates and acting as a lender to banks.
question
The main role of banks in the nation's economy is to
answer
store, lend, and invest money.
question
Read the graph about mortgage interest rates and housing starts between 1978 and 1983. A conclusion that can be drawn from both graphs by looking at 1983 is that interest rates
answer
dropped, which led to more home starts.
question
Who mostly directly benefits when banks make a profit?
answer
shareholders, companies, and the economy
question
What types of investments do banks use to make a profit? Check all that apply.
answer
*buying stocks and bonds *buying several properties *buying the rights to loans
question
Read the graph that displays interest and total payments on a loan. Banks make the most money and take the most risk with an interest rate of
answer
18 percent