ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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to protect the nation’s financial status by holding all of its deposits in reserves
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to issue Federal Reserve notes, the paper currency we know as dollars
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to serve as a financial intermediary between savers and borrowers
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to make sure consumers save enough money for retirement
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Detailed explanation-1: -Although banks do many things, their primary role is to take in funds-called deposits-from those with money, pool them, and lend them to those who need funds. Banks are intermediaries between depositors (who lend money to the bank) and borrowers (to whom the bank lends money).
Detailed explanation-2: -Banks are a financial intermediary-that is, an institution that operates between a saver who deposits money in a bank and a borrower who receives a loan from that bank.
Detailed explanation-3: -The financial system brings together savers and borrowers by channeling funds from savers to borrowers while giving savers claims on borrowers´ future income. The financial system achieves this transfer by creating financial instruments, which are assets for savers and liabilities for borrowers.
Detailed explanation-4: -Asset storage. Commercial banks provide safe storage for both cash (notes and coins), as well as precious metals such as gold and silver. Providing loans. Investments. Spreading risk. Economies of scale. Economies of scope. Bank. Credit union. More items •07-Dec-2022