Respuesta :
1. Why might an individual want to use a bank? Give an example of why a person would use a bank.
A person who might not be able to pay some bills might go to a bank and take out a loan or might use a checking account to store money.
2. Why might a business want to use a bank? Give an example of why a business owner would use a bank.
A business might use a bank to take out a loan.
3. What is the Federal Reserve?
The Federal Reserve is the central banking system of the United States.
4. How does banking affect the money supply?
Banking affects the money supply by interacting with the economy by giving loans and taking interest.
5. What would happen if banking didn’t exist?
Banks allow the population to store their money in a safe way, without banks people would have to go back to a bartering system.
The way that banks earn profit is through banking fees and interest payments on the loans they give out.
Individuals would use a bank to save their money.
Businesses can use banks to get loans to expand the business.
The Federal Reserve is the central bank of the United States.
When there is more money in supply, businesses and people will have more money to spend on goods and services. The reverse is true.
Banking affects money supply by increasing the amount of money in circulation when they create loans.
What is the purpose of banks?
Banks are very important in the financial system because they make loans which then create money for businesses and people to spend.
Banks are able to make their own profit when they gain interest from the loans they make. Their activities are monitored by the Federal Reserve which is the central banking system of the United States.
Find out more on the Federal Reserve at brainly.com/question/7798250.
