How banks pay interest on your savings?

Activity Description

In this interactive worksheet, students will be presented with a graphical representation of deposit and loan transactions within a bank, allowing them to gain insights into how banks function financially. The central focus of this activity is to empower students with the knowledge needed to understand the mechanics of banking transactions. They will explore how banks generate interest income from borrowers, pay interest to depositors, and ultimately turn these financial operations into a profit. Through thoughtful analysis, students will uncover the inner workings of financial intermediation.

Students will use this image to do the interest calculations and to answer the review questions in the worksheet

This worksheet is a classroom-ready interactive and dynamic worksheet that just needs a few clicks to assign to your classroom. The worksheet is auto-scored, teachers just need to open the real-time console and monitor the student progress.

Learning Objective

Students will use this worksheet to understand the intermediation process happening in a bank. They will be provided with a scenario as shown below and asked to answer some questions -

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