Final answer:
Banks primarily obtain funding through depositors and by borrowing from other banks, primarily via the money market and the interbank market. Issuing stocks and government grants are less common methods for banks to obtain funding.
Step-by-step explanation:
The question pertains to how banks typically achieve the majority of their funding. Banks predominantly acquire funds by attracting depositors who place their money in savings accounts, earning interest, and through borrowing from other financial institutions such as larger banks. This is facilitated primarily through the money market and the interbank market. The money market is an avenue for banks to lend and borrow for short-term periods, which provides liquidity and helps manage cash flow. The interbank market is the network through which banks lend to and borrow from one another. It plays a pivotal role in maintaining stability in the banking system by allowing banks with surplus funds to lend to those with a deficit.
While banks may sometimes utilize the stock market to raise capital by issuing stock, this is not their primary source of funding; rather, it's a way for the bank to increase its own financial capital. Moreover, government grants are usually not a consistent source of funding for banks. Contrarily, the government may act as a lender of last resort through a central bank, such as the Federal Reserve in the United States, in exceptional circumstances.