Answer each of the following questions in complete sentences. 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?​