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

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

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

4. 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
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5. 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
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