Question

1. what is one role of a bank in the financial system? *

○ a) to provide loans to individuals and businesses

○ b) to sell stocks and bonds

○ c) to prepare tax returns

○ d) to offer insurance policies

Explanation:

Banks primarily facilitate lending to individuals (e.g., personal loans, mortgages) and businesses (e.g., business loans for operations/expansion). Selling stocks/bonds is done by brokerage firms, tax return preparation by accountants/tax services, and insurance policies by insurance companies. So option a aligns with a bank’s role.

Answer:

a) To provide loans to individuals and businesses