Question

how bank is a part of financial system​

Answer 1

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• Banks borrow from individuals, businesses, financial institutions, and governments with surplus funds (savings).

• Through the process of taking deposits, making loans, and responding to interest rate signals,

• the banking system helps channel funds from savers to borrowers in an efficient manner

Answer 2

Banks borrow from individuals, businesses, financial institutions, and governments with surplus funds (savings). Through the process of taking deposits, making loans, and responding to interest rate signals, the banking system helps channel funds from savers to borrowers in an efficient manner.