mention any four characteristics of bank?
Answers
Explanation:
1) Dealing in Money : Bank is a financial institution which deals with other people’s money i.e. money given by depositors.
2) Individual / Firm / Company : A bank may be a person, firm or a company. A banking company means a company which is in the business of banking.
3) Acceptance of Deposit : A bank accepts money from the people in the form of deposits which are usually repayable on demand or after the expiry of a fixed period. It gives safety to the deposits of its customers. It also acts as a custodian of funds of its customers.
4) Giving Advances : A bank lends out money in the form of loans to those who require it for different purposes.
5) Payment and Withdrawal : A bank provides easy payment and withdrawal facility to its customers in the form of cheques and drafts. It also brings bank money in circulation. This money is in the form of cheques, drafts, etc.