6
QuizMultiple Choice

Banking and Financial Institutions

Question 6 • TX-Personal Financial Literacy and Economics

Some savings accounts help depositors earn money. Where does this money come from?

Answer
A
from the federal government agency known as the FDIC
B
from the interest that borrowers pay to a bank for a loan
C
from the central banking system, which is called the Fed
D
from other depositors’ money kept in the bank’s vault

Explanation

Banks earn interest when they lend money to borrowers. They use some of that income to pay interest to people who keep money in savings accounts. The FDIC protects deposits rather than providing the interest, so the money comes from interest borrowers pay on bank loans.

AI-written and checked against the verified answer.

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