Question

What are the most basic functions of a bank? Choose two correct answers.

to encourage economic growth and low unemployment
to hold deposits in checking and savings accounts
to make loans to individuals and businesses
to maintain stable prices in the economy
to monitor the money supply

Answer 1

- to hold deposits in checking and savings accounts
- to make loans to individuals and businesses

Explanation: Commercial banks primarily accept deposits and provide loans. The other choices (stable prices, money supply, unemployment) are functions of central banks or broader economic policy, not basic commercial bank functions.