ScienceEconomics(Unit 3) Lesson 6: Banking
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(Unit 3) Lesson 6: Banking

Brooklynn White avatar Brooklynn White
11 January 2023
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question
What explains the difference between retail and commercial banking?
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Retail banks loan money to small businesses, while commercial banks loan money to large corporations.
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Bank deposits help the nation's economy by
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giving banks the money to loan and invest
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Which best explains why banks consider interest on loans to be important?
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Interest helps them cover business costs
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What types of investments do banks use to make a profit? Check all that apply.
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buying stocks and bonds, buying several properties, buying the rights to loans
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The Federal Reserve Bank of the United States is also known as the
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central bank
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Who mostly directly benefits when banks make a profit?
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shareholders, companies, and the economy
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A responsibility the Federal Reserve has is to
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loan money to banks during a crisis
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An entrepreneur who needs money to create and distribute a new invention would most likely visit
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an investment banker.
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The Federal Reserve manages the nation's currency and money supply by
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setting interest rates and acting as a lender to banks.
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The main role of banks in the nation's economy is to
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store, lend, and invest money.