HOW BANK WORK????
Introduction
This article briefly explains how bank work in real time.Bank functions because of our trust.Banks can legally extend considerably more credit than they have cash.Why do we feel better about having our money in a bank than we do having it under a attress? -conveniences of electronic banking .
What it is a Bank?
A bank is an institution that deals in money and its substitutes and provides other financial services. Banks accept deposits and make loans and derive a profit from the difference in the interest rates paid and charged, respectively.
Banks create money in the economy by making loans.
How lending money affects the economy?
Why does banking work?
Banking is all about trust.
Banks consistently extend more credit than they have cash.
In the event of a bank failure, your money is protected as long as the bank is insured by the Insurance Corporation
The key to the success of banking, however, still lies in the confidence that consumers have in the bank's ability to grow and protect their money.
How do banks make money? 
How your money continue to earn money when it is in bank?
The End..... :-)
Posted byPrashanthNaik at 2:30 AM
Labels: Banking, Money, Technology
Posts
