What are the characterestic of bank
Answers
Answer:
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.
A bank is a financial institution licensed to receive deposits and make loans. Banks may also provide financial services such as wealth management, currency exchange, and safe deposit boxes. There are several different kinds of banks including retail banks, commercial or corporate banks, and investment banks.
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.
The two most distinctive features of a commercial bank are borrowing and lending, i.e., acceptance of deposits and lending of money to projects to earn Interest (profit). In short, banks borrow to lend.
Answer:
Characteristics of a Bank / Features of Banking
- It may be an Individual/Firm/Company.
- It is a profit and service oriented institution.
- It acts as a connecting link between borrowers and lenders.
- It deals with money.
- It accepts deposits from public.
- It provides Advances/Loans/Credit to customers.