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- Banks serve several purposes, including12:
- Receiving deposits and making loans.
- Keeping money safe for customers.
- Offering interest on deposits to protect against inflation.
- Lending money to firms, customers, and homebuyers.
- Providing financial advice and related services, such as insurance.
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.Key Takeaways
- A bank is a financial institution licensed to receive deposits and make loans.
- There are several types of banks including retail, commercial, and investment banks.
www.investopedia.com/terms/b/bank.aspMain purpose of banks
- Keep money safe for customers
- Offer customers interest on deposits, helping to protect against money losing value against inflation.
www.economicshelp.org/blog/glossary/banks/ - People also ask
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