Question

PLEASE HELP ME, I WILL GIVE YOU 10 MORE POINTS AND MARK YOU THE BRAINILEST ANSWER!!!!! Write one paragraph that summarizes clearly why banks are important to the U.S. economy and how government actions can affect how banks operate.
Write a second paragraph that explains whether you think the federal government should be allowed to use credit. Remember, people debate this topic often so there is no clear right or wrong answer. The important thing is to support your claim with facts from the lesson. Include at least three reasons for your opinion.

Answer 1

Banks are important to the U.S. economy because, they help monitor the money supply. They also keep money, "safe," when the piggy bank doesn't work anymore. They can allow depositors to earn interest on their money, and allow borrowers to be granted loans. Government can affect banks in the process of buying, and selling securities. Also, the Fed can loan money to banks so the banks make additional loans to more people


Should the federal government borrow money? They have used credit. Evidence of this fact is depicted in America's debt. Credit is not free money. America does not need to continually spend money they don't have. The U.S. has already degraded itself due to it's debt, and while credit can be used as a good thing, the U.S. has already misused it, so why should they abuse money they have to pay for? I do not believe that the U.S. should use credit due to their debt, their actions (as of now), and their reputation

Answer 2

The banking system is crucial for the functioning of the US economy because they make loans and create credit. Without loans many people wouldn't be able to buy a house or a car, and the economy would collapse. Government regulates the banks to make sure they are being fair to their clients.