2
QuizMultiple Choice

Macroeconomics — Test

Question 2 • Economics

Bank deposits help the nation’s economy by

Answer
A
providing protection for banks on investments.
B
giving banks the money to loan and invest.
C
providing protection for consumers from theft.
D
giving consumers the ability to save money.

Explanation

When people deposit money, banks can use those funds to make loans and investments, while keeping enough available for withdrawals. Those loans and investments help businesses expand and consumers make purchases, supporting the nation’s economy. The correct choice is “giving banks the money to loan and invest.”

AI-written and checked against the verified answer.

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