Final answer:
The bank is engaging in Predictive analysis to forecast the future average balances of checking and savings accounts, which aides in managing capital effectively and understanding risk.
Step-by-step explanation:
The type of analysis the bank is performing by predicting the average checking and savings account balance is d) Predictive analysis. This method uses historical data and statistical algorithms to forecast future outcomes. By analyzing account balances, banks can proactively manage their capital and resources to serve their customers more effectively, maintain liquidity and understand potential risks associated with account balances fluctuating. Financial institutions such as banks are important because they serve both borrowers and savers; they provide secure places for individuals to save and they facilitate the use of money in the economy.
Financial institutions also consider factors such as the role of interest and risk in allocating savings to its most productive use and the importance of capital formation. Predictive analysis can also assist in the management of these aspects by forecasting economic conditions that affect savings and loan interest rates.