Introduction of the Great Depression Purposes of A Bank Introduction of the Great Depression

The 2 Main Reasons Why People Use A Bank: 1. Safety 2. To Make Money (by interest – which will be defined later)

Did people trust the banks in the 1920s? Yes They thought they could always see their money

What is interest? Interest is a promise from the bank when you deposit (give) money that they’ll give you a percentage back as profit over time I need a volunteer

How does a bank make money? They use deposited money to make loans. For example a bank will lend money to someone who wants to buy a house or start a business They charge people they lend money to more than the amount of money they promise someone who deposits money I need 2 volunteers