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Answer : 3. "their power to create money"
The special importance of banks among financial institutions comes from:-
5Q:
The special importance of banks among financial institutions comes from:-
- 1their large and heavy transactionsfalse
- 2their positions as suppliers of moneyfalse
- 3their power to create moneytrue
- 4their influence on the economyfalse
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Answer : 3. "their power to create money"
Explanation :
Although banks do many things, their primary role is to take in funds—called deposits—from those with money, pool them, and lend them to those who need funds. Banks are intermediaries between depositors (who lend money to the bank) and borrowers (to whom the bank lends money).