Question

How do banks help ordinary people?​

Answer 1

Answer:

Banks are closely linked with our everyday lives and activities. Drawing salaries, paying bills, buying homes, building up savings and taking out loans all involve transactions with banks. Businesses also rely on the banking system for settlement of their transactions and meeting other financial needs.

Answer 2

Answer:

Concept :

A bank's role is to gather public deposits and lend those deposits for the growth of commerce, industry, trade, and agriculture. Bank gets interest on loans and advances from depositors at higher rates than it pays to depositors.

Explanation :

• Banks lend money via funding advances on current accounts for consumers, providing instalment loans, investing in marketable debt securities, among other methods.
• Banks offer a variety of payment services, and most organisations and people view having a bank account as essential.
• The bank lends the cash you deposit there to other people for long-term debt, such as credit card debt, mortgages, and other forms of debt.
• This procedure aids in generating market liquidity, which generates new money and maintains the supply.
• A financial institution that engages in borrowing and lending money is a bank. Banks accept deposits from consumers in exchange for an annual interest payment.
• The majority of these deposits are subsequently put to use by the bank by lending to other clients for various loans.
• The profit margin for banks is essentially the difference between the two interest rates.
• Because they provide a service for those looking to save, banks play a significant role in the economy. Banks are crucial in providing financing to companies looking to invest and grow.
• These corporate loans and investments are crucial for promoting economic growth.

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