Question

Select all that apply

Which of the following are the two basic functions of commercial banks?
A. Printing money
B. Paying interest
C. Cashing checks
D. Accepting deposits
E. Making loans

Answer 1

The two basic functions of commercial banks are accepting deposits and making loans.

Step-by-step explanation:

The two basic functions of commercial banks are:

1. Accepting deposits: Commercial banks provide individuals and businesses a safe place to deposit their money. They offer various types of accounts, such as savings accounts and checking accounts, where customers can deposit their money and earn interest on their deposits.
2. Making loans: Commercial banks lend money to individuals and businesses in the form of loans. These loans can be used for various purposes, such as buying a house or starting a business. Banks earn money by charging interest on these loans.