This convenience does mean if it pays little or no interest that we are willing to hold money in the form of checking deposits even. In change this provides banking institutions a large benefit over, state, shared funds. It may earn seven percent interest if I put money in a mutual fund (say a long-term Treasury Bond fund. But i can not make use of the fund that is mutual financial obligation in my opinion buying things. Me to buy stuff, I’m willing to lend them money at very low or zero interest since I can use a commercial bank’s debt to. In change which means that the commercial bank can attract cash extremely cheaply. Since the bank makes an income through the distinction between the attention price it charges on loans while the interest its smart on deposits, this helps.