To regulate the financial system

To manage the government's budget

To set interest rates

To issue currency

Open market operations

Reserve requirements

Fiscal policy

Discount rate

To ensure banks have enough cash on hand to meet customer withdrawals

To control the money supply

To discourage banks from lending money

To generate revenue for the government

Commercial banks lend money to businesses and individuals, while investment banks help companies raise capital.

Commercial banks accept deposits from the public, while investment banks do not.

Commercial banks are regulated by the government, while investment banks are not.

All of the above

To set interest rates

To regulate banks

To manage the government's budget

To issue currency

To insure deposits up to a certain amount

To regulate banks

To provide loans to banks

To manage the government's budget

Checking accounts allow you to write checks, while savings accounts do not.

Checking accounts pay interest, while savings accounts do not.

Checking accounts have higher fees than savings accounts.

All of the above

To allow you to borrow money

To make purchases without cash

To build your credit score

All of the above

Debit cards are linked to your checking account, while credit cards are linked to a line of credit.

Debit cards allow you to make purchases without cash, while credit cards do not.

Debit cards have lower interest rates than credit cards.

All of the above

To allow you to borrow money to buy a house

To build your credit score

To get a tax break

All of the above

Fixed-rate mortgages have a fixed interest rate for the life of the loan, while adjustable-rate mortgages have an interest rate that can change.

Fixed-rate mortgages typically have lower interest rates than adjustable-rate mortgages.

Fixed-rate mortgages are more risky than adjustable-rate mortgages.

All of the above

To allow companies to raise capital

To allow investors to buy and sell stocks

To create jobs

All of the above

Stocks represent ownership in a company, while bonds are loans to a company.

Stocks pay dividends, while bonds pay interest.

Stocks are more risky than bonds.

All of the above

To allow investors to pool their money and invest in a variety of stocks and bonds.

To reduce risk

To generate income

All of the above

Roth IRAs are funded with after-tax dollars, while traditional IRAs are funded with pre-tax dollars.

Roth IRAs have no income limits, while traditional IRAs do.

Roth IRAs allow you to withdraw your contributions tax-free, while traditional IRAs do not.

All of the above