Purpose of the Bank System
What is one main purpose of banks?
Keeping money safe.
What is the main job of the bank system?
To keep money safe.
Who are customers in the bank system?
People and businesses who use banks.
What is needed so banks can give loans and allow withdrawals?
Money
What can happen if people borrow too much money?
They can get into debt.
How do banks help people buy expensive things?
By giving loans.
What does the bank system help people do with their money?
Save, spend, and borrow it.
What bank do people use for checking and savings?
Commercial banks.
What must people have to feel safe putting their money in banks?
Trust
Why can loans become expensive over time?
Because of interest.
How do banks help money move in the economy?
Through payments and transfers.
Who uses the bank system?
People, businesses, and governments.
What kind of bank is owned by its members?
Credit unions.
Who makes lending and borrowing possible?
Borrowers and lenders
Does everyone have the same access to banking services?
No, not everyone gets the same access to money.
Why is saving money important to banks?
It allows banks to lend money.
Why is the bank system important?
It helps the economy run smoothly.
What bank helps companies invest and raise money?
Investment banks.
What do banks need to run ATMs, online banking, and keep records?
Reliable technology
What can happen if a bank is not managed properly?
Banks can sometimes fail or crash.
What is the overall goal of the bank system?
Economic growth and stability.
What would be difficult without a bank system?
Safely storing, borrowing, and transferring money.
What bank controls interest rates and money supply?
The central bank.
What protects banks and customers from theft, fraud, and cyber attacks?
Strong security
What is a risk of relying too much on borrowing?
People may depend too much on loans instead of saving.