Question

Problem 35

Answer 1

Introduction

A bank is a financial institution that accepts public deposits, makes demand deposits, and provides loans. Financial markets might be used by the bank to carry out loan operations, either directly or indirectly. Due to their essential role in financial security and the economy, banks are tightly regulated in most regimes. A system known as fractional reserve banking has been established in most nations, in which banks keep liquid assets equal to a percentage of their current liabilities.