what are two important functions of bank
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Banks borrow from individuals, businesses, financial institutions, and governments with surplus funds (savings).Through the process of taking deposits, making loans, and responding to interest rate signals, thebanking system helps channel funds from savers to borrowers in an efficient manner. Hope it helped thanks
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aloha!
{ thanks for asking this question :) }
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important functions of banks are:
★ the banks take the money from depositers and hold only 15% with them and give the rest of the money to the people who need loans at some interest.
★ When the banks get money back from the people who took loan, they get some extra money some of which they keep with themselves and rest of the money is transferred to the account of depositer.
★ the difference of what is charged from the depositers and the one that is paid to the borrowers serves as a source of income.
»»————- ★ ————-««
hope it helps :)
{ thanks for asking this question :) }
»»————- ★ ————-««
important functions of banks are:
★ the banks take the money from depositers and hold only 15% with them and give the rest of the money to the people who need loans at some interest.
★ When the banks get money back from the people who took loan, they get some extra money some of which they keep with themselves and rest of the money is transferred to the account of depositer.
★ the difference of what is charged from the depositers and the one that is paid to the borrowers serves as a source of income.
»»————- ★ ————-««
hope it helps :)
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