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Banks are able to alter the money supply such that savings stored in banks have interest rather than simply storing money in piggy banks at home. Banks are also able to loan money to those who need it which also has conditions needed to be met as an exchange. Banks are able to control the supply of money in our economy greatly.

Answer:

Banks can change the cash supply with the end goal that reserve funds put away in banks have premium instead of just putting away cash in secret stashes at home. Banks are additionally ready to advance cash to the individuals who need it which likewise has conditions should have been met as a trade. Banks can control the inventory of cash in our economy extraordinarily.

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