Which of the following is an example of the role of banks?
A)help control the amount of currency in circulation
B)financial intermediaries
C)manage stock portfolios
D)manage the money supply
E)create money

Question

Quizplus · Accepted Answer

Banks serve as financial intermediaries, connecting those who have excess funds with those who need them. They accept deposits and use that money to provide loans and make investments, effectively facilitating the flow of money in the economy. While banks do play a role in managing the money supply and creating money through the fractional reserve system, these functions are closely monitored and regulated by central banks such as the Federal Reserve. Managing stock portfolios is not a core function of banks.

Which of the Following Is an Example of the Role