{"id":13107,"date":"2014-02-07T16:46:15","date_gmt":"2014-02-07T16:46:15","guid":{"rendered":"http:\/\/www.mometrix.com\/academy\/?page_id=13107"},"modified":"2022-02-23T16:34:59","modified_gmt":"2022-02-23T22:34:59","slug":"how-banks-function","status":"publish","type":"page","link":"https:\/\/www.mometrix.com\/academy\/how-banks-function\/","title":{"rendered":"How Banks Function"},"content":{"rendered":"<h1>How Do Banks Function?<\/h1>\n<p>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&#8217;s reserve ratio (how much money a bank must keep on reserve).<\/p>\n<div class=\"lyte-wrapper fourthree\" title=\"How Banks Function\" style=\"width:420px;max-width:100%;margin:5px auto;\"><div class=\"lyMe\" id=\"WYL_lYFB7ApExq4\"><div id=\"lyte_lYFB7ApExq4\" data-src=\"https:\/\/www.mometrix.com\/academy\/wp-content\/plugins\/wp-youtube-lyte\/lyteCache.php?origThumbUrl=https%3A%2F%2Fi.ytimg.com%2Fvi%2FlYFB7ApExq4%2Fhqdefault.jpg\" class=\"pL\"><div class=\"tC\"><div class=\"tT\">How Banks Function<\/div><\/div><div class=\"play\"><\/div><div class=\"ctrl\"><div class=\"Lctrl\"><\/div><div class=\"Rctrl\"><\/div><\/div><\/div><noscript><a href=\"https:\/\/youtu.be\/lYFB7ApExq4\" rel=\"nofollow\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.mometrix.com\/academy\/wp-content\/plugins\/wp-youtube-lyte\/lyteCache.php?origThumbUrl=https%3A%2F%2Fi.ytimg.com%2Fvi%2FlYFB7ApExq4%2F0.jpg\" alt=\"How Banks Function\" width=\"420\" height=\"295\" \/><br \/>Watch this video on YouTube<\/a><\/noscript><\/div><\/div><div class=\"lL\" style=\"max-width:100%;width:420px;margin:5px auto;\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>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&#8217;s reserve ratio (how much money a bank must keep &#8230; <a title=\"How Banks Function\" class=\"read-more\" href=\"https:\/\/www.mometrix.com\/academy\/how-banks-function\/\" aria-label=\"Read more about How Banks Function\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"open","template":"","meta":{"footnotes":""},"class_list":["post-13107","page","type-page","status-publish"],"aioseo_notices":[],"aioseo_head":"\n\t\t<!-- All in One SEO Pro 4.9.10 - aioseo.com -->\n\t<meta name=\"description\" content=\"This video tutorial helps explain the basics of How Banks Function. 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