Written by the Fiveable Content Team • Last updated August 2025
Verified for the 2027 exam
Verified for the 2027 exam•Written by the Fiveable Content Team • Last updated August 2025
Definition
Financial institutions such as commercial banks that accept deposits from the public and use those deposits to make loans, organizing their assets and liabilities on balance sheets.
AP course connection
Topic 4.4: 4.4 Banking and the Expansion of the Money Supply