MAKING LOANS. Banks receive funds from people who do not need them at the moment and lend them to those who do. For example, a couple may want to buy a house but have only part of the purchase price saved. If one or both of them have a good job and seem likely to repay a loan, a bank may lend them the additional money they need. To make the loan, the bank uses funds other people have deposited. A major obligation of a bank is to permit depositors to withdraw their funds upon demand. But no bank has enough cash readily available to satisfy its depositors if all were to demand their funds at the same time. Banks know from experience, however, that such a demand-called a run-rarely occurs. If people are confident they can withdraw their funds at any time, they will leave them on deposit at the bank until needed. As a result, banks can loan and invest a large percentage of the funds deposited with them. In most countries, the government limits the percentage of a bank's funds that can be used for loans and investment. The government simultaneously sets a minimum percentage that must be kept on reserve for meeting withdrawals.

STUDENT, A person who studies. Ex. a student of human nature. She is a student of birds.
A. person who is studying at a school, college, or university. Ex. That high school has 3,000 students. A student is a person who is learning to fulfill his powers and to find ways of using them in the service of mankind (Harold Taylor).

CONSOLIDATION, the act of consolidating or condition of being consolidated, especially: a making firm or strong; strengthening. Ex. The consolidation of marble did not fall out at random (John Woodward).
A combining or unifying. Ex. A consolidation of the family's resources made his trip possible.