An essential function for a bank is to

Name: An essential function for a bank is to
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Creating money through lending is a fundamental function of banks. When banks lend money, they create deposits and increase the money supply in the economy. Maximizing assets or lending all deposits may not be effective or beneficial for the bank, depending on market conditions and risk management practices. Minimizing reserve ratios could also be risky and potentially lead to liquidity problems.

An Essential Function for a Bank Is to