A bank is a financial institution that accepts deposits from customers and provides various financial services, such as loans, investments, and payment services. Its primary function is to facilitate the flow of money between individuals and businesses.
The functions of a bank include:
1. Accepting deposits: Banks accept deposits from customers, which can be in the form of savings accounts, current accounts, fixed deposits, and recurring deposits.
2. Lending money: Banks provide loans to individuals and businesses for various purposes, such as buying a home, starting a business, or investing in stocks.
3. Investment services: Banks offer investment services, such as mutual funds, stocks, and bonds, to help customers grow their wealth.
4. Payment services: Banks provide payment services, such as debit cards, credit cards, and online banking, to enable customers to make transactions easily and securely.
5. Foreign exchange services: Banks provide foreign exchange services to enable customers to exchange currencies for international transactions.
6. Safekeeping of valuables: Banks offer safe deposit boxes to customers for the safekeeping of valuables such as jewelry and important documents.
Overall, banks play a crucial role in the economy by providing financial services that help individuals and businesses manage their money effectively.
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