How do banks contribute to the stability of the society at large while safeguarding funds for their customers?

Question

i really need someone smart

Answer 1

How does not doing your own homework contribute to your academic success?

Answer 2

I take it your professor is liberal?

Banks are not in business to contribute to society. They are in business to make a profit for their shareholders. Any contrary thinking would be incorrect.

Banks do have compliance limitations with depositor funds. Example: They cannot take all customers deposits and go to Vegas or trade commodities, currencies or even stocks. Most of the money is loaned out for individuals, businesses in the way of mortgages, other property, credit cards, etc.

http://www.federalreserve.gov/aboutthefe...

http://www.federalreserve.gov/Regulation...

The FDIC guarantees federally chartered bank deposits.

http://en.wikipedia.org/wiki/Federal_Dep...