What is the primary function of a bank?

The primary function of a bank is to store consumer money and provide loans. Banks play a crucial role in the economy by accepting deposits from individuals and businesses, which they then use to offer loans to those who need financial resources for various purposes, such as buying a home or funding a business. This process not only facilitates individual and business financial activities but also contributes to overall economic growth by mobilizing savings and providing credit.

In addition to storing money, banks offer a safe place for consumers to keep their funds, protecting them from theft and loss. By providing loans, banks help stimulate economic activity, enabling consumers and businesses to invest and spend, which in turn creates a cycle of growth and development in the economy.