The most important function of banks in an economy is extending credit. This function facilitates investment and consumption by providing individuals and businesses with the necessary funds to pursue various economic activities, ultimately driving economic growth and development. While guarding savings, providing mutual fund options, and managing employee pay systems are also important functions, extending credit plays a crucial role in the overall functioning of the economy.
Which is the most important function of banks in an economy?
Responses
extending credit
extending credit
guarding savings
guarding savings
providing mutual fund options
providing mutual fund options
managing employee pay systems
1 answer