ECONOMICS – BANKING QUESTIONS AND GRADED
ANSWERS, 100% GUARANTEE
When does a bank earn interest? - when a consumer makes a payment on a loan
How much profit does the bank make at the end of the year in this scenario? - $100
According to the video, what are the two other most important ways banks make money? -
banking fees
investments
Which of these scenarios best describes fractional reserve banking? - Maria makes a
deposit of $20,000, and the bank loans $18,000 to Mark so he can buy a car
Why do banks keep some money in reserve rather than loaning out all of their deposits? Check
all that apply. - because they are required to by law
because they have to meet the withdrawal
requests made by customers
What causes a bank run? - Too many people try to withdraw their deposits at the same
time.
What group is responsible for stepping in to prevent a bank run? - banking regulators like
the Fed
ANSWERS, 100% GUARANTEE
When does a bank earn interest? - when a consumer makes a payment on a loan
How much profit does the bank make at the end of the year in this scenario? - $100
According to the video, what are the two other most important ways banks make money? -
banking fees
investments
Which of these scenarios best describes fractional reserve banking? - Maria makes a
deposit of $20,000, and the bank loans $18,000 to Mark so he can buy a car
Why do banks keep some money in reserve rather than loaning out all of their deposits? Check
all that apply. - because they are required to by law
because they have to meet the withdrawal
requests made by customers
What causes a bank run? - Too many people try to withdraw their deposits at the same
time.
What group is responsible for stepping in to prevent a bank run? - banking regulators like
the Fed
