Webquest Homework

The Great Depression

How Banks Work

Go to this website and learn how banks work. Use your reading to answer the following questions.

1.  What does a bank do with the money you leave there as a deposit?

2.  How does bank lending create money in the economy?

3.  What is a reserve requirement?

4.  What is meant by the term “a run on a bank”?

5.  How do banks make money?