Read the passages "A Future without Cash" and "What Do Banks Do?" and answer the questions that follow. Make sure you answer all of the questions.

Passage 1: A Future without Cash

1	Cultures are always evolving, often in subtle ways that many of us are not even aware of. One way that the business world is changing is in its dependence on cash. In past decades, cash was king. Debit and credit cards were only an option. Today, in growing numbers, that is no longer true. Plastic rules over cash, sometimes to the point that a business or establishment will not accept paper bills or metal coins. Instead, credit cards or other electronic payments are used for everything. That is a change for the better, both for business owners and for their clients or customers.
2	For business owners, being cashless means no longer having to store and transport bills and coins. No employee has to go to and from the bank to make deposits or get more change. Bulky and expensive cash registers become a thing of the past. Without any cash on the premises, there is far less risk of being robbed.
3	Going cashless would help the economy as well. A recent study by Tufts University found that the United States spends about $200 billion per year by continuing to use cash. The report stated that taking cash out of circulation would "unlock massive savings in time and money."
4	Finally, doing away with the use of bills and coins is easier on everyday Americans. We would no longer have to carry cash in our wallets or stop by the bank to take out money. There would be no more errant coins jiggling in our pockets and purses. For many people, a plastic card is no longer necessary either. Many smartphones have payment apps that can be used instead. Some stores have their own apps that shoppers can use to pay. Since people enjoy using their smartphones for virtually everything, these apps are likely to become even more popular.
5	Of course, there are people who protest this next step in the economy's evolution. About one out of 13 households are "unbanked." This means they do not have any traditional checking or savings accounts. Instead, all of their purchases and payments are done in cash. Those ten million Americans, however, might take this shift in currency options as motivation to finally get bank accounts.
6	Other people think that doing away with cash is illegal or unconstitutional. It is neither. Both the Federal Treasury and the Federal Reserve support the right to refuse cash. All private businesses are legally allowed to determine their own payment policies. As the Treasury states, there is no law "mandating that a private business, a person, or an organization must accept currency or coins as payment for goods or services." The Treasury further states that no private business must accept cash unless there is a state law that says otherwise. Unbelievably, the only state where businesses are required to accept cash is Massachusetts.
7	Life is all about change. While some may drag their feet, that change includes leaving cash behind and accepting plastic. Holding on to bills and coins is like insisting on riding horses and buggies in the age of the automobile. It is outdated, old-fashioned, and unnecessary.

"A Future without Cash" written for educational purposes.

Passage 2: What Do Banks Do?

8	Banks in the United States were created when people needed a safe place to keep their gold. Nowadays people use cash instead of gold, but they still depend on banks to keep their currency safe. In exchange for keeping money safe, banks make profits off of customers' money by lending, or "selling," it to other borrowers. Sometimes consumers get to earn a little interest while the bank uses their money. For example, when people make a deposit into a savings account, the bank must pay them a small percentage of that amount each month for the use of their money. If you put $100 into the bank, you may be paid a few cents a month for the use of that money. That doesn't sound like very much, but the more money a person puts into a savings account, the more interest the bank will pay.
9	There are many different types of banks. Some banks work with individuals, and others work with businesses. Our federal government works with a central bank. Federal Reserve System
10	Many people don't fully understand the Federal Reserve System, as it has many parts. The Federal Reserve, commonly known as the Fed, serves as the central bank of the United States. It is an independent agency of the United States government. This means it is not owned by the government, but it reports to Congress.
11	The primary responsibility of the Fed is to protect our country's money system. You can think of it as a watchdog. It watches over our money supply and the prices for goods and services. It does this by monitoring and controlling the financial institutions of our nation. It is also in charge of setting the percentages of interest that all banks in the U.S. use to calculate how much they charge for loans and how much they pay to use people's money. Commercial Banks
12	Commercial banks work directly with consumers. Individual customers use retail banks to manage their money. They do this in various ways, such as through checking and savings accounts, personal loans, home loans, and credit cards. Commercial banks make money by lending to individuals and small businesses.
13	Banks also provide convenience to their customers. For example, rather than having to go to a bank and withdraw cash, a person can simply use his or her debit card to pay for goods and services. The money is then automatically withdrawn, or taken out of the person's account. People can also use online banking services to pay bills and deposit and transfer money without ever having to set foot in the bank. Corporate Banks
14	Corporate banks are banks that work with corporations, or large businesses. Corporations have very different banking needs from consumers. Corporations borrow large sums of money in order to keep expanding their businesses. When corporations pay loans back to the bank, they have to pay interest as well. Corporate banks tend to make more money than commercial banks do. Cash Currency
15	The central bank of the United States is responsible for making cash currency, the coins and paper money that people carry in their wallets. These days, people are carrying less and less cash. More often, they earn and spend money electronically by the use of account numbers and debit cards. For instance, employers can pay workers by depositing money into the workers' bank accounts instead of mailing them paper checks. As mentioned above, when people use debit cards to purchase goods and services, the debit amount is automatically deducted from their account. People even use smartphones now to pay bills and purchase goods and services.
16	With rapid advances in technology, modern banking looks nothing like it did when the first banks opened in the United States. People no longer use banks to store gold and silver, but most people still rely on banks to help keep their money safe.

"What Do Banks Do?" written for educational purposes. Now answer the questions. Base your answers on the passages "A Future without Cash" and "What Do Banks Do?"

Based on the details in Passage 2, what is the most likely reason that corporate banks make more money than commercial banks do?

A.

Corporations have very different banking needs from consumers.

B.

Commercial banks provide more conveniences to their customers.

C.

Commercial banks lend money to businesses smaller than corporations.

D.

Corporations borrow large sums of money to keep expanding their businesses.