18
QuizMultiple Choice

Globalization and International Trade — Unit test

Question 18 • EA Academy Civics 9

When depositors put money into a bank, what does the bank do with this money?

Answer
A
The bank sends the money to a central bank in Washington, DC.
B
The bank uses the money to make loans to borrowers and earn interest.
C
The bank spends the money on new branches to get more depositors and borrowers.
D
The bank locks the money in a vault and leaves it there until the depositors want it back.

Explanation

Banks keep some deposited money available for withdrawals, but they use much of it to make loans to individuals and businesses. Borrowers repay those loans with interest, which helps the bank earn money. So the correct choice is B, the bank uses the money to make loans to borrowers and earn interest.

AI-written and checked against the verified answer.

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