Simple Civics Questions 7th grade
1. Banks are businesses. Like other banks, they seek profit. How do they earn profit?
2. Why might an individual want to use a bank? Give an example of why a person would use a bank.
3. Why might a business want to use a bank? Give an example of why a business owner would use a bank.
4. What is the Federal Reserve?
5. The money supply is the total amount of money available in the economy. How do changes in the money supply affect people and businesses?
6. How does banking affect the money supply?
7. What would happen if banking didn’t exist?
Answers
Answer:
1- Banks earn profit through the interest they charge.
2- To multiply it's money and keep it safe.
example:
A man is keeping his money once in locker and once in bank account under provision. In locker money would not multiply and can be hacked if the codes are known . But in bank account money would multiply with atmost care and bank policies.
3- To transact all its works cashless and if required can take loans and pay them in due time.
5- changes in money supply would affect the country's economy and adversely on the working class salary receiving common man .
6- Banks are the surety of our money . If there is a mishap or any serious change in money investment and lending policies , people won't be unanswered . Banks are bound to do their required help.
7- People won't be able to transact foreign trade and they can't get the benefits of investment and money lending and borrowing.