Final answer:
Retail banks primarily 'accept deposits to checking accounts' which allows them to provide loans and other financial services. They serve both borrowers and savers and aim to make a profit through interest on loans.
Step-by-step explanation:
The phrase that best completes the diagram referring to the functions of retail banks is 'accept deposits to checking accounts.' Retail banks accept these deposits and use them to give various types of loans, including home mortgages. Additionally, they provide cash management services and hold a supply of money that can be readily accessed by their customers. By accepting deposits, banks can then utilize the money stored within these accounts to lend to borrowers, making profits by charging interest on these loans.
Retail banks are financial institutions that serve both borrowers and savers, are in business to make money, and make it possible to save money in a secure location. They also offer checking accounts, which sometimes include free checking for students to encourage customer loyalty.