Question

Which of the following two aims for which people deposit their money in banks?

• A. Their money is safe in banks
• B. It exchanges their status
• C. They get interest in return
• D. Both 1 and 3

Answer 1

Answer: (D)

Both 1 and 3

A Bank is a financial institution which is involved in borrowing and lending money. Banks take customer deposits in return for paying customers an annual interest payment. The bank then use the majority of these deposits to lend to other customers for a variety of loans.
Following are the main points :

1. Keep money safe for customers
2. Offer customers interest on deposits, helping to protect against money losing value against inflation.
3. Lending money to firms, customers and home buyers.
4. Offering financial advice and related financial services, such as insurance