#1
What is the primary function of a bank?
To provide financial services
ExplanationBanks offer various financial services to customers.
#2
What is the purpose of financial services?
All of the above
ExplanationFinancial services encompass a wide range of offerings including banking, investment, and insurance.
#3
What is the purpose of a savings account?
To store money for short-term goals
ExplanationSavings accounts are designed to hold funds for short-term needs while earning interest.
#4
What is one of the primary functions of the Federal Reserve System?
To regulate the banking industry
ExplanationThe Federal Reserve System oversees and regulates banks to maintain stability in the financial system.
#5
What is the main purpose of a credit union?
To provide financial services to specific groups
ExplanationCredit unions serve particular communities or groups by offering financial services.
#6
What is the purpose of a money market account?
To earn a high interest rate
ExplanationMoney market accounts offer higher interest rates compared to regular savings accounts.
#7
What is the primary function of an investment bank?
To facilitate the issuance of securities
ExplanationInvestment banks assist in the issuance and trading of securities like stocks and bonds.
#8
What is the purpose of a certificate of deposit (CD)?
To earn a high interest rate
ExplanationCertificates of deposit offer fixed interest rates for a specified term.