In finance, a bond is an instrument of indebtedness of the bond issuer to the holders. The most common types of bonds include municipal bonds and corporate bonds.B) extending loans to borrowers who will pay low interest rates, but who are poor credit risks. C) acquiring funds at a relatively high cost, so Bankers’ concerns regarding the optimal mix of excess reserves, secondary reserves, borrowings from the Fed, and borrowings from other banks to deal.It provides loans to the customers according to their needs at an attractive rate of interest and flexible payment duration. You can pay the loan in equated monthly installment using your bank account. And the Bajaj Finserv personal loan offers 45% lesser EMIs compared to other lenders.Offer customers interest on deposits, helping to protect against money losing value against inflation. Banks are seen as a secure place to deposit money. It would be impractical and risky to keep all This enables banks to pay a higher interest rate as the bank needs less liquidity. 3. Loans.