Bank origin -
"Bank" - Italian word "Banco"
i.e. A heap or mountain or bench.
Why we called as Bank?
Early in history peoples transact their business by seating on bench at different market places. Hence we calling as bank "banco".
Today word "bank" is used as comprehensive term for many institutions carrying out certain kinds of financial businesses.
Definition of Bank -
Institutive which borrows money from one class of peoples and further gives (provides) money to other class of peoples for profit generation.
Now a days banks as different meanings as per uses like -
- Normal salary earner knows bank as a Saving institution.
- Businessman /current account holder knows banks as financial institution.
Need of Bank ? [ Practical meaning]
Peoples earns money to meet their day to day expenses on food, clothing, education of self or children’s, we also need money to meet their future expenses like Marriage, higher education of children’s, housing and social functions. This are big expenses hence we need to save some money out of days to income & expenses today. Hence saving are needed and required but it’s also have risk of theft, loss, robbery and other accidents.
Thus people need a place where people can deposit their savings (money) with guarantee that they will able to withdraw money whenever required.
Types of Banks -
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