The Banking Industry

The video explores President Franklin D. Roosevelt's New Deal, focusing on its role in alleviating the Great Depression through public works and banking reforms. It explains how banks operate, including the concepts of interest and loans, and discusses the transition from layaway plans to credit purchasing. The video also highlights the risks associated with buying on credit, emphasizing the importance of financial responsibility.

What was one of the key components of the New Deal that helped restore confidence in the banking system?

• Public Works Administration

• Federal Bank Deposit Insurance Corporation

• Civilian Conservation Corps

• Social Security Act

How do banks reward customers for depositing money?

• By giving cash bonuses

• By paying interest

• By providing free financial advice

• By offering discounts on loans

What is the primary way banks earn money from loans?

• By offering insurance products

• By investing in the stock market

• By selling customer data

• By charging interest to borrowers

What was a limitation of the layaway plan compared to buying on credit?

• Layaway plans required full payment before ownership

• Layaway plans had higher interest rates

• Layaway plans were only available for luxury items

• Layaway plans offered no payment flexibility

How does buying on credit make expensive items more accessible?

• By eliminating interest charges

• By allowing immediate ownership with monthly payments

• By reducing the overall cost

• By providing government subsidies

What is a potential risk of buying too many items on credit?

• Increased savings

• Higher income

• Improved credit score

• Financial instability

What can happen if you fail to make payments on a credit purchase?

• The bank will offer a lower interest rate

• The bank will take back the purchased item

• The bank will increase your credit limit

• The bank will forgive the remaining debt