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11. Eloise and Gunnar have saved a lot of money. $50,000 is in a CD at their local bank and $75,000 is in their money market account. One day they get the distressing news that their bank has failed. Is their money lost forever? What if the combined balances of their accounts were over $250,000? _ ______________________________________________________________________________ _ ______________________________________________________________________________ _ ______________________________________________________________________________ 12. Eloise and Gunnar also have a thousand dollars in a Bitcoin e-wallet. Their Bitcoin exchange account is hacked and the money was stolen. Is it gone for good? _ ______________________________________________________________________________ 13. Eloise is a busy woman and hates standing in line at her bank. She is thinking about opening an account with an online-only bank . She is wondering what the advantages and disadvantages are and if her deposits are at risk in the event the bank fails. Tell her about online-only banks. _ ______________________________________________________________________________ _ ______________________________________________________________________________ _ ______________________________________________________________________________ _ ______________________________________________________________________________ _ ______________________________________________________________________________ 14. Eloise wonders what banks do with all the money they receive from depositors. She imagines that the bank takes her money and puts it into a vault drawer with her name on it. Explain to Eloise what the bank does with her money. _ ______________________________________________________________________________ _ ______________________________________________________________________________ _ ______________________________________________________________________________ 15. Banks are profit-driven institutions, meaning they are in the business of making money. List three ways banks make a profit . _ ______________________________________________________________________________ _ ______________________________________________________________________________ _ ______________________________________________________________________________ Yes, the money is gone. PRODUCT PREVIEW
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THE 21st CENTURY STUDENT’S GUIDE TO FINANCIAL LITERACY
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