Economics Not Such a Dismal Science for US High School Students (2/2)

Students received a score with a point value between 0 and 300. The report says male students scored an average of four points higher than female students. And students from schools in large cities did not do as well as those from other places. Students answered questions in 3 major areas: market economy and national and international economy.

72% could describe the risks and possible rewards of leaving a job for more education. 52% knew what happens to money deposited in banks. But only 11% understood how changes in the unemployment rate affect pay, spending and production.

The next economics testing will take place in 2012. So what does happen to most of the money deposited in checking accounts at a commercial bank? A) It is used to pay the bank's expenses. B) It is loaned to other bank customers. C) It is kept in the bank's vault until depositors withdraw the funds. Or, D) It is paid to owners of the bank as return on their investment.

The correct answer: B) It is loaned to other bank customers.