How Does Bank Generate Money?
What is A Bank? Bank is the Financial Institution which accepts the money from public in the form of deposits and also lends the money to public in the form of loans and carry out the financial activities. Bank plays a major role in the economy and it is the backbone of the financial operations in the country Let’s look into how Bank Generates Money POV of the General Public: • Usually People think that Banks lend loans and charges interest on the loans through which it generates most of its Revenue. • Banks provide locker facility services and charges fees to it where it may generate its secondary income. How Banks actually generate money? • Banks do invest in physical gold as well as in sovereign gold bonds and in stocks and get healthy returns on it , through which it generates the primary source of income. • Banks provide various services as following:- 1. Exchange of currencies 2. Investment management 3. Credit card and Debit card 4. Mutual funds and many more Bank charges f...