Question

true or false (1 point each)

1. ______ financial institutions exist to solve the problem of making money available to the people and businesses who need it.
2. ______ banks profit from the difference in interest rates paid on deposits and charged on loans and collecting fees for services.

Explanation:

1. For question 14: Financial institutions act as intermediaries, connecting those with excess funds to those (people/businesses) in need of funds, which is their core function.
2. For question 15: Banks earn money primarily through net interest margin (difference between loan interest and deposit interest) and service fees like account maintenance, transaction fees, etc.

Answer:

1. TRUE
2. TRUE