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Anonymous
Anonymous asked in Business & FinanceCredit · 1 decade ago

Can anybody tell me how a bank functions?Dont lol...?

6 Answers

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  • druid
    Lv 7
    1 decade ago
    Favorite Answer

    In it's most basic form, a bank is started by investors who put money into the business. Using this money, the bank makes loans and charges interest so they get back the money they lend and more. Dividends can then be paid to the investors. All the services of a bank are used to make more money. For instance, you open a savings account and put money in the bank. The bank pays you, say, 2% interest on your money. The bank can now lend your money out for, say, 10% interest so they make money on your money. This was a good question.

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  • 1 decade ago

    a b and c come in and deposit their money. the bank keeps a record of this on their account. They get 2% interest for leaving their money in the bank. e f and g come in for a loan and the bank uses a b and c's money to lend them the money and they charge e f and g 15% interest for for giving them the loan.

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  • 1 decade ago

    Bank accept money from the depositors for safe keeping but lend it for higher interest to earn profit.

    it takes care of all its customer's business related matters.

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  • 1 decade ago

    A bank is a storage for money.

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  • 1 decade ago

    Bravo, Druid! Great answer!

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  • 1 decade ago

    Check this out: http://money.howstuffworks.com/bank.htm

    It explains everything.

    Source(s): www.howstuffworks.com
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