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1. Banking effects the money supply because it allows for secure money and safe investing. This can help grow a country's economy and make a strong middle class.

2. If banking didn't exist then there would most likely be a lot of break-ins to steal money and other items. This would mostly be due because there will be no "safe" place to store someones money.

cethridge06
Banks are able to alter the money supply such that savings stored in banks have interest rather than simply storing money in piggy banks at home.
Banks are also able to loan money to those who need it which also has conditions needed to be met as an exchange. Banks are able to control the supply of money in our economy greatly.
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