Question

18. FINANCIAL INSTITUTIONS End of Chapter Quiz Answer True (T) or False (F): 1. Financial institutions are businesses that store money for customers and lend money to customers. 2. In order to earn the most profit. most financial institutions loan out all the money that their customers deposit. and processing checks is called interest. ness and pay their owners a profit. 3. The fees financial institutions charge customers for storing money 4. Financial institutions use the money they earn to operate the busi- 5. By making loans, a financial institution increases the supply of money. 6. Banks that are chartered by the federal government are governed by stricter rules than banks chartered by most state governments 7· Credit unions are financial institutions that are owned by their ㅡ members. 8. The central bank in the United States is called the Federal Reserve System. 9. All checks that are written on U.S. banks are cleared through the Fed. --10. Deposits in banks, S&Ls, and credit unions are all insured by the Federal Deposit Insurance Corporation (FDIC).

Answer 1

1) True as this the work they are into like banks,NBFC
2)False as the governemnt will not allow it
3)false
4)true
5)true
6)true
7)true
8)true
9)true
10)true