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According to the selection, which two of the
following things can happen to the money that a
person deposits in a U.S. bank?
A) It is used to pay the salaries of Federal Reserve
(B) It is lent to other people at interest.
C) It remains in the person’s bank account.
(D) It is invested.
(E) It is sent to one of the 12 regional Reserve Banks.

Ask by O'Quinn Bernard. in the United States
Mar 31,2025

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The two correct options are:
  • B) It is lent to other people at interest.
  • C) It remains in the person’s bank account.

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Beyond the Answer

When a person deposits money in a U.S. bank, one of the exciting things that can happen is that it may be lent to other people at interest. This practice helps the bank generate revenue while allowing borrowers to access the funds they need, whether it’s for a new car or a home purchase.
Additionally, the money can also remain in the person’s bank account, ready for use whenever they need it. This ensures that the depositor has access to their funds and can manage their finances with ease and convenience, all while earning a bit of interest, depending on the specific account type.

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