One significance of commercial banks is that it facilitates payments for smooth flow of money within the economy.

Yes, that's correct! Commercial banks play a crucial role in the economy by facilitating payments and providing various financial services. Here’s a breakdown of why this is significant:

1. Payment Processing: Commercial banks enable individuals and businesses to carry out transactions efficiently through checks, debit/credit cards, electronic transfers, and online banking.

2. Liquidity: They provide liquidity by allowing depositors to withdraw funds as needed, which maintains the smooth flow of money.

3. Credit Provision: Banks lend money to consumers and businesses, which stimulates economic activity and investment, further enhancing payment capabilities in the economy.

4. Financial Intermediation: By pooling deposits and providing loans, banks help allocate resources effectively to where they are most needed, promoting overall economic stability.

5. Risk Management: Banks offer various financial products that help individuals and businesses manage risks, contributing to a more stable economic environment.

In summary, the ability of commercial banks to facilitate payments not only aids in the movement of money but also supports broader economic functions, thereby enhancing economic growth and stability.