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1) There are several ways in which consumers and businesses can use their saving or idle funds. They can deposit them in the commercial bank, they can take them to saving bank or to a saving and loan association, or they can buy stocks and bonds.
3) Since there is competition for saving, the bank must offer an attractive rate of interest. the higher the rate, the less likely it will be that savers will bring funds to the bank because people will prefer a more profitable way to save. Besides being saving institutions, banks serve anther vital function. They act as a market for money
6) There is another side to the bank's role in the economy. Since the prosperity of the bank is tied directly to the prosperity of the community in which it does business, bankers usually take an active interest in local development efforts to bring new industry to the area. They help and advise businessmen who are interested in setting up the biggest buyers of local government bonds. By buying these bonds they lend money for local improvements that will make their community a better place to live and to do business