ECONOMICS
SAVING AND INVESTING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Allowance
|
|
|
Income
|
|
|
Interest
|
|
|
Tips
|
Detailed explanation-1: -A deposit interest rate is the rate of return a financial institution pays you on your deposits into its account. Interest rates can vary by financial institution, and a higher interest rate means you will earn more money.
Detailed explanation-2: -The FDIC-short for the Federal Deposit Insurance Corporation-is an independent agency of the United States government. The FDIC protects depositors of insured banks located in the United States against the loss of their deposits if an insured bank fails.
Detailed explanation-3: -In a way, a bank borrows money from their depositors by using the deposited funds to lend money to other customers. In turn, the bank pays the depositor interest for their savings account balance while simultaneously charging their loan customers a higher interest rate than what was paid to their depositors.
Detailed explanation-4: -The bank can lend your money to borrowers in the form of loans, mortgages or credit cards, and in return you’re paid interest.