Banks Past and Present: teacher key

How Banks Work, grade 8 edition, written for 8th grade. Banks come in several kinds and have a long history of runs, failures and rescues. Read how they began, how insurance works and who watches over them.

Read the book. Print this page for the key.

Questions and answers

1. Which charters can a bank's founders choose from?
   • Only a state one
   • State or federal (answer)
   • Only a federal one
2. Who were the first savings banks founded to serve?
   • Large businesses and firms
   • Members of credit unions
   • Workers with little money (answer)
3. What does FDIC insurance not cover?
   • Savings accounts
   • CDs
   • Stocks and bonds (answer)
4. Before deposit insurance, who might get their money in a bank run?
   • Every depositor, in full
   • Only the first few (answer)
   • Just the bank's owners
5. What does the word charter mean?
   • A permit to start a bank (answer)
   • A kind of loan from a bank
   • A paper check for a payment

Words

• charter: license to operate
• depositor: person who deposits
• annuities: not covered
• supervising: watching over