Question

tha modern forms of money are closely linked to the modern banking system. explain.

Answer 1

• The modern banking system allows extra cash to be deposited in the banks.
• According to the modern forms of money, we can  deposit the money in any currency and also take out the money from the banks in the currency that we desire.
• Several credit functions are also performed by the banks.
• Like the modern forms of money, the modern banking system enables the better usage of money in a more reliable manner.

Answer 2

Explanation:

1. Banks are the institutions that help people deposit the excess cash they hold and draw cash when they require it in the form of demand deposits.
2. The banks also perform several other credit functions. Banks are integral for depositing excess cash and taking loans at reasonable interest rates.
3. The modern banking system has permitted individuals, firms, and the economy to reap the benefits of using currency and deposits.