Question

18. What is Bank? Write the functions of a Bank​

Answer 1

Answer:

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Bank -

A bank is a financial institution licensed to receive deposits and make loans .

The function of a Bank is -

• To collect deposits from the public and lend those deposits for the development of Agriculture, Industry, Trade and Commerce.
• Bank pays interest at lower rates to the depositors and receives interests on loans and advances from them at higher rates.

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Answer 2

A bank is a financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital markets.

The function of a Bank is to collect deposits from the public and lend those deposits for the development of Agriculture, Industry, Trade and Commerce. Bank pays interest at lower rates to the depositors and receives interests on loans and advances from them at higher rates.