Banking and the Economy Mini-Quiz

Can you exchange money for goods and services?

• Yes

• No

Does “money” ONLY refer to currency?

• Yes

• No

Can you make unlimited withdrawals from a savings account?

• Yes

• No

Is it safe to keep your money in the bank?

• Yes

• No

Do banks pay people more for savings accounts than they charge for loans?

• Yes

• No

Could most people start a business without a loan?

• Yes

• No

Does lending make more money available to spend?

• Yes

• No

Are banks required to keep some money in reserve?

• Yes

• No

Does anyone supervise the banking industry?

• Yes

• No

Does the Fed want the economy to swing wildly up and down?

• Yes

• No