How Do Banks Function?

How do banks function? Well, commercial banks borrow money from individuals, companies, the government, and other institutions by accepting deposits. Banks then earn their money by loaning out money and charging interest on those loans. The Federal Reserve System determines a bank’s reserve ratio (how much money a bank must keep on reserve).


How Banks Function
794835


Provided by: Mometrix Test Preparation

Last updated: 04/06/2018

 

Mometrix Test Preparation - Chasing your dreams requires the right tools. Find your test
Follow us

 

Mometrix eLibrary