explain the importance of banks
Answers
Answer:
A bank is a financial institution which is involved in borrowing and lending money. Banks take customer deposits in return for paying customers an annual interest payment. The bank then uses the majority of these deposits to lend to other customers for a variety of loans. The difference between the two interest rates is effectively the profit margin for banks. Banks play an important role in the economy for offering a service for people wishing to save. Banks also play an important role in offering finance to businesses who wish to invest and expand. These loans and business investment are important for enabling economic growth
1. Banks helps to conserve the money of public.
2. Banks offer loans which helps the poor people to carry out religious ceremonies etc.
3. Some banks also offer some BIMA under which if u deposit money it will increase at a small interest.
4. Last but not the least banks help the people to safely use money.