Money is a good to be bought and sold, just like anything else. The price we pay for money is called interest. Banks are the profit-making corporations that make this good available to us. Let's see how well your bank is doing. Get a copy of your bank's (or any bank's) annual financial report. (You can find one at the information or customer service desk at most banks). Read the report thoroughly. Don't skip the introductory message to the stockholders and the footnotes. After analyzing the report, answer the following questions:
1. What are the bank's major sources of income?
2. What are its major expenses?
3. What was its reported income (or loss) last year?
4. What did it do with the income it earned?
5. What are the bank's major assets?
6. What are the bank's major liabilities?
7. If you had funds, would you invest in stock in this bank? Why or why not?