Question
Class 7Social ScienceBanks and the magic of Finance

What is a bank, and what are its two main functions?

Verified Answer

A bank is a financial institution that collects money from people in the form of deposits and lends money to people or borrowers as loans. Banks help make monetary transactions easy by offering services like saving, withdrawing, and borrowing money. These services are used by farmers, shopkeepers, businesses, and institutions.