Why do we feel better about having our money in a bank than we do having it under a mattress? Is it just because they pay interest on some of our account? Is it because we know that if we have the cash in our pockets, we'll spend it? Or, is it simply because we prefer to write checks and use credit cards rather than carry cash? Any and all of these may be the answer. Now, we don't even have to write a check; we can just present a credit card or, in some countries, click the "pay" button on the bant's Web site.

Banks are useful to our economy. The first function of banks is to make money «move» by lending it toothers who can then use it to buy homes, bisinesses, snd kids to college and do other things.

When you deposit your money in the bank, your money goes into a big pool along with everyone else’s, and your account is credited with the amount is deducted from your account balance. The interest you earn on your balance is also added to your account.

Banking is all about trust. We trust. We trust the bank because i twill have aur money for us when we go to get it. Besides, it will honour the checks we write to pay our bills. The thing that’s hard to grasp is while people are putting money into the bank every day, the bank is lending that same money and more to other people every day. That’s little scary. But if you go to the bank and demand your money, you’ll get it. however ? If everyone goes to the bank at the sametime and demands their money, there might be a problem.

 

 

What's a Bank?