Which of the following is an example of the role of banks?

Question

Quizplus · Accepted Answer

Banks serve as financial intermediaries by facilitating the flow of money between borrowers and lenders. They collect deposits from savers and lend these funds to borrowers, earning a profit on the difference in interest rates.

B, C, D, and E are also roles that banks can play, but they are not as general or essential as financial intermediation. For example, some banks may engage in creating money through fractional reserve banking, but not all banks do so. Similarly, some banks may offer investment products, but this is not a core function of banking. Managing the money supply and controlling currency circulation are more specific tasks that may be carried out by central banks or government agencies, rather than commercial banks.

Which of the Following Is an Example of the Role