How do banks help the economy?

Question

They work with large companies.
They help money move through the economy.
They tell people how to invest.
They create more money for people.

Answer 1

They provide loans to individuals and businesses, allowing them to make investments, purchase goods and services, and grow their businesses. This helps stimulate economic activity and growth. They also offer a safe place for individuals and businesses to deposit their money, making it easier for transactions to occur and helping to facilitate economic exchange. Additionally, banks play a crucial role in the financial system by managing risk, providing financial services, and promoting economic stability.