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How can a bank afford to pay 3% interest to depositors?
safe loans, borrowers default and the bank goes out of business
interest
all of the above
banks are experts at finding the right borrowers, this enables to earn money via loans and pay depositors interest
True
interest
banks charge borrowers 6% interest
the economy grows
Who is affected when borrowers do not pay back their loans?
safe loans, borrowers default and the bank goes out of business
interest
all of the above
banks are experts at finding the right borrowers, this enables to earn money via loans and pay depositors interest
True
interest
banks charge borrowers 6% interest
the economy grows
Which is NOT a consequence of banks going out of business?
safe loans, borrowers default and the bank goes out of business
interest
all of the above
banks are experts at finding the right borrowers, this enables to earn money via loans and pay depositors interest
True
interest
banks charge borrowers 6% interest
the economy grows
amount money grows over time
safe loans, borrowers default and the bank goes out of business
interest
all of the above
banks are experts at finding the right borrowers, this enables to earn money via loans and pay depositors interest
True
interest
banks charge borrowers 6% interest
the economy grows
Which is an incorrect opportunity cost pair?
safe loans, borrowers default and the bank goes out of business
interest
all of the above
banks are experts at finding the right borrowers, this enables to earn money via loans and pay depositors interest
True
interest
banks charge borrowers 6% interest
the economy grows
A depositor is like a bank for banks; they are actually borrowing money from depositors.
safe loans, borrowers default and the bank goes out of business
interest
all of the above
banks are experts at finding the right borrowers, this enables to earn money via loans and pay depositors interest
True
interest
banks charge borrowers 6% interest
the economy grows
Why are banks MORE than just a middle man between depositors and borrowers?
safe loans, borrowers default and the bank goes out of business
interest
all of the above
banks are experts at finding the right borrowers, this enables to earn money via loans and pay depositors interest
True
interest
banks charge borrowers 6% interest
the economy grows
what is the reason smart people put their money in a bank?
safe loans, borrowers default and the bank goes out of business
interest
all of the above
banks are experts at finding the right borrowers, this enables to earn money via loans and pay depositors interest
True
interest
banks charge borrowers 6% interest
the economy grows
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