Let's say that you have put $1,000 in your savings account at a local financial institution, and an employee of the bank tells you that the bank does not have the money you deposited in its vault (or anywhere else) in the bank. Could the employee be correct and, if so, then where is the money that you deposited into your savings account? Should you be worried about getting your deposit back from the bank? Why or why not? Explain how your deposit benefits the banking and financial system in the U.S.

Let's say that you have put $1,000 in your savings account at a local financial institution, and an employee of the bank tells you that the bank does not have the money you deposited in its vault (or anywhere else) in the bank. Could the employee be correct and, if so, then where is the money that you deposited into your savings account? Should you be worried about getting your deposit back from the bank? Why or why not? Explain how your deposit benefits the banking and financial system in the U.S.

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter14: Money And Banking

Section14.3: Types Of Money In The United States

Problem 5R

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