How do banks work? Are they to be trusted? And where is your deposited money right now, anyway? Answer this quiz to find out all about how banks work.
Question 1 of 20
What do banks do with the cash we deposit into our accounts?
Question 2 of 20
How are banks good for the economy?
Question 3 of 20
Which body determines the amount that banks can lend?
Question 4 of 20
If a bank has a reserve requirement of 10%, how much can it lend out on a $100 deposit?
Question 5 of 20
What does "a run on the bank" refer to?
Question 6 of 20
If the bank is insured, then your money will be safeguarded. Who does it need to be insured by?
Question 7 of 20
Why were commercial banks initially set up?
Question 8 of 20
What market were savings banks intended to serve?
Question 9 of 20
In what way are banks like any other business?
Question 10 of 20
If a loan is deemed "risky," what does the bank do regarding the interest rate?
Question 11 of 20
Banks have an arrangement with other banks whereby they charge each other for short-term loans. What is this called?
Question 12 of 20
Supposing you wanted to set up a private bank one day, you need partners. They form the:
Question 13 of 20
With regard to a bank, what is the purpose of the state or federal charter?
Question 14 of 20
In the U.S. state of Florida, what is the minimum number of directors you must have to set up a bank?
Question 15 of 20
How much stock does a bank holding company hold?
Question 16 of 20
In the state of New York, how much capital is required to start a bank in a metropolitan area?
Question 17 of 20
To start a bank, you apply to the Office of the Comptroller of the Currency. If your application is complete, how long does it take to receive a reply?
Question 18 of 20
To start your own bank, how important is the name?
Question 19 of 20
Most depositors are usually protected by insurance for up to:
Question 20 of 20