Moderators ban people?

Moderators can ban people right? If so where is this option in the Control Panel?

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To answer your question : You can find it in Admin Panel > General Admin > Security
NOTICE : You have to be in Advanced parameters to see "security".

Okay another question. How do they ban people? do they do it from their Control Panels or what?

They have a "Ban this member" button when they look in a member's profile.

Does the thing need to be inactive or active for them to ban?

This must be active if you want your moderators to ban a member when he causes trouble on the forum.

do they have to be a special rank to ban people or do they just have to be in the Moderator usergroup?

They just need to have moderator permissions on at least one section.

Then there is something wrong because I tried both active and inactive and both times my moderators said they could not see the ban this member button.

So how would I go around getting this resolved?

Hello? How can this be resolved?

when its active in security & the mod is a mod of at least one section or is in a group with mod access, in the profile of a user, down the buttom you should see "user is active" there is "yes" "no" "banned"