When a person deposits money into a commercial bank what happens?

When a person deposits money into a commercial bank, the bank records the deposit as a liability on its balance sheet, as it owes that money back to the depositor. The bank can then use a portion of these deposits to make loans or invest, which helps generate profit. Additionally, the depositor may earn interest on their funds, depending on the type of account. Overall, this process facilitates the bank's ability to provide financial services and support economic growth.