risks, savings, financial, funds, deposits, heart, complex, subject, appear,
repay, as, lose, reserve, returns, balance

Banks are crucial to a country's economy; they serve as the center point of the exchange of money throughout the economy. They gather{{U}} (1) {{/U}}from small and large depositors, make loans, run the payments system, and coordinate{{U}} (2) {{/U}}transactions. In developing countries, they usually are the {{U}} (3) {{/U}}of the financial market and in industrial countries with{{U}} (4) {{/U}}financial markets they still have a role as primary providers of financial services.
It is difficult for the layman to know if a bank is financially solid. Banks may{{U}} (5) {{/U}}more solid than they really are. A bank that has loaned money to a borrower who is unable to{{U}} (6) {{/U}}may keep the bad loan on its{{U}} (7) {{/U}}sheet us long as possible, though the loan might never be paid back. Moreover, bank{{U}} (8) {{/U}}are also somewhat precarious. A bank normally cannot refuse to accept deposits, but if, for whatever reason, its depositors{{U}} (9) {{/U}}confidence in the bank's soundness, they may withdraw their{{U}} (10) {{/U}}not only from that bank but also from other perfectly sound banks.
In seeking profits, banks lend on the basis of their customers' deposits, but not all deposits can be lent out. A certain share must be held in{{U}} (11) {{/U}}. Competing institutions providing financial services are in a different situation since they are usually not{{U}} (12) {{/U}}to reserve and prudential requirements. Firms selling equities do not promise fixed{{U}} (13) {{/U}}and neither equities nor bonds are payable on demand,{{U}} (14) {{/U}}are most bank deposits. Because of the pivotal role of banks and their vulnerability to unusual{{U}} (15) {{/U}}, there seem to be good reasons to protect deposits through an appropriate insurance scheme and, in this way, to protect both the bank and the banking system.