Economics - Banking
According to the video, what are the two other most important ways banks make money?
banking fees investments
What group is responsible for stepping in to prevent a bank run?
banking regulators like the Fed
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
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
What causes a bank run?
Too many people try to withdraw their deposits at the same time.