Module 2 Quiz

Test your understanding of how banks work covered in Lessons 5-8.

Passing Score: 70%

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Quiz Questions

See the interactive quiz at: frontend/defi-high-school/quizzes/money-basics/module-02-quiz.html

Topics Covered:

• Banks as financial intermediaries

• Fractional reserve banking

• How interest works (simple vs. compound)

• APR vs. APY

• Common bank fees and their impact

• Banking hours and processing delays

Key Concepts to Review:

1. The three core functions of banks (safekeeping, payments, lending)

2. Why banks don't keep all deposits on hand

3. How banks profit from the interest rate spread

4. The compound interest effect over time

5. How fees disproportionately affect low-balance customers

6. Why banking hours limit access to your money