Quiz/part Of Test Study Guide Questions & Ans 100% Correctly Verified Graded A+

A fee banks charge in exchange for borrowing money is called {Ans: interest}Which are the roles of a bank? Check all that apply. 1)Storing and holding money 2)Making purchases to create profits 3)Lending money 4)Investing in the economy 5)Creating money for the economy {Ans: 1, 3, and 4}Which example best describes how a bank injects money into the economy? {Ans: a bank approves a loan for a customer}Which is the correct order of entities that benefit when banks make a profit? {Ans: shareholders, companies, and the economy}The Federal Reserve manages the nation's currency and money supply by {Ans: manipulating interest rates and acting as a lender to banks.}The Federal Reserve transfers profits from its twelve regional banks to {Ans: The department of Treasury}Which best explains why banks consider interest on loans to be important? 1)Interest enables them to control the economy. 2)Interest helps them to satisfy customers. 3)Interest enables them to stockpile money. 4)Interest helps them cover business costs. {Ans: 4}How do central banks govern the banking industry? Check all that apply. (1)by deciding how much banks must keep in reserve (2)by overseeing the nation's payment system (3)by supervising the loan process at