First Fireside Chat Quizzes
Think you’ve got your head wrapped around First Fireside Chat? Put your knowledge to
the test. Good luck — the Stickman is counting on you!
Q. When you deposit money in a bank, what does the bank do with it?
Loans it out to others or invests it
Keeps all of it in a vault
Swims in it, Scrooge McDuck style
Locks it away until you retire
Q. Why is it better for the economy to keep money in a bank rather than in a shoebox under your mattress?
Banks can loan out the money so that others can buy things, which boosts the economy
The more money banks make, the higher their stock prices will be
Banks know how to use your money better than you do
You might forget that you have money under your mattress
Q. If every customer of a bank rushed to withdraw all of their money at once, what would happen?
The bank would have to turn people away, because they don't keep all of that cash on hand
There would be too much cash out there, and crime would increase
Banks would be told to close by the government
The amount of line cutting arguments would result in total anarchy
Q. Economic panic is almost always caused by ______, and almost always restored by ________.
fear; confidence
criminals; the government
stock market crashes, raising taxes
raising taxes, lowering taxes
Q. What do we call the central institution that regulates all of the banks in the nation?
The Federal Reserve
Congress
The Executive Branch
AmeriBank