BANKS

Banks are places where people can keep their money. Most people use banks to save money in their savings accounts and to pay money from their accounts. Today, when a person earns money from his job, his paycheque is often electronically deposited (put) into his savings-account. Then, he or she can pay his bills by writing cheques from his accounts or pay online where his bills are electronically connected to his bank accounts.
Banks also give loans to people. Banks use the money that their customers deposit to lend to people to buy new houses, cars, or to start businesses among other reasons. The bank makes money from lending by charging interest. In other words, people have to pay back more than they borrowed. This amount depends on how risky the bank thinks the borrower is and how fast the loan is paid back among other things.
Answer the following questions
1 What do banks not do?
a provide a place where people can pay their bills from
b lend money to people
c help people get jobs
d provide a place for people to save their money
2 How does “interest” work?
a Banks require people to pay back more money than they borrowed
b Banks require people to pay back the same amount they borrowed
c Banks pay people more money than they borrowed
d Banks require people to pay back money they borrowed very quickly
3 How do banks make money?
a Electronically
b Charging interest to those they lend to
c By having a lot of accounts
d Saving their customers’ deposits
4 How much “interest” do borrowers have to pay?
a It depends on a lot of things
b The story doesn’t say
c Most borrowers don’t have to pay interest
d Everyone pays the same amount of interest.
5 What do banks not do?
a Charge interest
b Allow people to pay bills online from their accounts
c Give loans
d All of the above