The two major functions of commercial banks are to
A) maintain checking accounts and lend money to individuals and firms.
B) print and circulate money and serve as lenders of last resort.
C) store gold and stabilize financial markets.
D) provide for-profit services such as money orders and traveler's checks and to store people's valuables.
E) supervise the financial activities of thrift institutions and maintain monetary stability.

Question

Quizplus · Accepted Answer

Commercial banks primarily maintain checking accounts of individuals and firms, enabling them to conduct daily transactions easily. They also lend money to these parties for various purposes such as investments, purchasing assets, or working capital needs. While commercial banks may provide other services such as money orders and traveler's checks, their primary functions are centered around deposit-taking and lending. The other options listed do not accurately reflect the main functions of commercial banks.

The Two Major Functions of Commercial Banks Are to