Why do banks offer incentives like interest on money you deposit into savings accounts?(1 point) Responses They keep money secured in a vault They keep money secured in a vault They loan the money deposited back out to other customers They loan the money deposited back out to other customers The money is not insured if not in a savings account The money is not insured if not in a savings account Question 18 Which government agency insures bank deposits?(1 point) Responses FDIC FDIC FTC FTC FDA FDA SEC SEC Question 19 Which of these would lead to the highest price?(1 point) Responses low supply; high demand low supply; high demand high supply; high demand high supply; high demand low supply; low demand low supply; low demand
The bank offers incentives like interest on money deposited into savings accounts because they loan the money deposited back out to other customers. This allows the bank to generate revenue from the interest charged on these loans.
The government agency that insures bank deposits is the FDIC (Federal Deposit Insurance Corporation). They provide deposit insurance to protect depositors in case of bank failures.
In terms of price, high supply and low demand would generally lead to the highest price. When supply is limited and demand is high, it creates a scarcity that can drive up prices.
Choose from the responses
The correct response for question 18 is FDIC (Federal Deposit Insurance Corporation).
The correct response for question 19 is high supply; high demand.