The function of the capital accounts of a commercial bank is to:

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The capital accounts of a commercial bank provide a cushion for possible bank losses. This is because the capital accounts represent the bank's own funds, which are available to absorb losses before depositors' funds are affected. In other words, the capital accounts serve as a buffer against losses that might otherwise threaten the bank's ability to meet its obligations to depositors. While the other choices (meeting reserve requirements, providing funds for loans, and supporting the purchase of buildings and equipment) may be related to the capital accounts in some way, they are not the primary function of these accounts.

The Function of the Capital Accounts of a Commercial Bank