Read the following passage and answer the questions that follow:
Banks are places, where people can keep their money. Most people use banks to save money in their savings accounts and to pay money from their checking accounts. Today when a person earns money from their job, their Pay check is often electronically deposited into their savings or checking account. Then he or she can pay their bills by writing checks from their checking accounts or pay online where their bills are electronically connected to their bank accounts.
Banks also give loans to people. Banks use the money that their customers deposit to lend to people to buy new houses, cars or to start businesses. The bank makes money from lending by charging interest. In other words, people have to pay back more than they borrowed. This amount depends on how risky the bank thinks the borrower is and how fast the loan is paid back.
Question 1
How is ‘interest’ that borrowers have to pay calculated?
1. Most borrowers don’t have to pay interest
2. It depends on how risky the bank thinks the borrower is.
3. It depends on the repayment time the borrower needs.
Which of the above options is correct?
(A) 1 only
(B) 1 and 2 only
(C) 2 and 3 only
(D) 1, 2 and 3 only
Question 2
From where do banks get money to lend it to borrowers?
1. Customer’s deposit
2. Taxing people
3. Earnings from people’s job
4. From its own stored cash
Which of the above options is correct?
(A) 1 only
(B) 1 and 3 only
(C) 1, 2 and 3 only
(D) 1, 2 and 4 only
Question 3
How do banks make money?
1. By depositing customer savings
2. Charging interest to the borrowers
3. By opening a lot of accounts
4. By printing money
Which of the above options is correct?
(A) 2 only
(B) 1 and 2 only
(C) 1 and 4 only
(D) 1, 2 and 4 only
Question 4
What is the principle behind charging Interests?
1. Banks pay people more money than they borrowed.
2. Banks require people to pay back the same amount of money they borrowed.
3. Banks require people to pay back more money than they borrowed.
4. Banks require people to pay back money they borrowed very quickly.
Which of the above options is correct?
(A) 1 only
(B) 2 only
(C) 3 only
(D) 3 and 4 only
Question 5
How do people use banks?
1. To keep their money safely.
2. To pay bills via cheques.
3. To pay bills electronically.
4. To borrow loans.
Which of the above options is correct?
(A) 1, 2 and 3 only
(B) 1, 2 and 4 only
(C) 1, 3 and 4 only
(D) 1, 2 3 and 4
SOLUTIONS TO DAILY CSAT MISSION # 9
1. (D) 2. (B) 3. (C) 4. (C) 5. (A)
Explanations
History is possible only on Tuesday.
Consider Economics. English is just before Economics, and Maths is just after Economics. This means these three subjects happen consecutively on three days. The only three free days remaining are Wednesday, Thursday and Friday. So, English goes to Wednesday, Economics to Thursday and Maths to Friday. This leaves Statistics on Monday.
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