One of the essential functions a bank performs is that of

Question

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One of the fundamental roles of a bank is to take deposits from savers and then lend that money to borrowers. This process of transferring funds from savers to borrowers is essential for the functioning of an economy as it allows savers to earn interest on their money while providing for the capital needs of businesses and individuals. Options A, B, and D are incorrect as banks do not create money by lending required reserves, participate in the stock market, or purchase government bonds as their primary functions.

One of the Essential Functions a Bank Performs Is That