Explain each of the following terms in your own words.
Currency-
Interest-
Money supply-
Profit-
Stock-
Answer each of the following questions in complete sentences.
Banks are businesses. Like other businesses, they seek profit. How do they earn profit?
Why might an individual want to use a bank? Give an example of why a person would use a bank.
Why might a business want to use a bank? Give an example of why a business owner would use a bank.
What is the Federal Reserve?
The money supply is the total amount of money available in the economy. How do changes in the money supply affect people and businesses?
How does banking affect the money supply?
What would happen if banking didn't exist?
Complete the following diagram to give an example of how banking affects society. Use this diagram or you may choose to use the diagram from your CAP File.
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