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A place where money is kept, and lending and other financial services are provided, is called?
A. A market
B. A bank
C. A treasury
D. A mint
Correct Answer Is Option = A bank
Notes / Explanation
A place where money is kept, and where lending and other financial services are provided, is called a bank, which is an institution of great importance in the economy and in everyday life. A bank is an institution that deals with money and provides a range of financial services to people, businesses and governments. One of the basic functions of a bank is to keep money safe for people, for a person may deposit their money in a bank, where it is kept safely, rather than keeping it at home, and the person can then take out their money when they need it. In return for keeping money deposited with it, a bank may pay a certain amount, called interest, on the money, particularly on money left with it for a period. Another basic function of a bank is the lending of money, for a bank lends money to people, businesses and others who need to borrow it, for various purposes, and the borrower repays the money over time, together with an additional amount, also called interest, charged for the loan. In this way, the bank brings together those who have money to deposit and those who need to borrow money, using the deposited money to make loans, which is an important function in the economy. Banks also provide many other services, such as enabling people to make payments and to transfer money, providing means of payment, exchanging currencies, and offering various other financial services. Banks are of great importance to the economy, for they keep money safe, provide loans that enable people and businesses to make purchases and investments, and provide the means for making payments and carrying out financial transactions. The central bank of a country oversees the banking system. The study of banks and their functions is a part of general knowledge and of the understanding of the economy. For PPSC and other competitive examinations, the key points to remember are that a place where money is kept and where lending and other financial services are provided is called a bank, that a basic function of a bank is to keep money safe for people who deposit it, sometimes paying interest on it, that another basic function is the lending of money to those who need to borrow, who repay it with interest, and that banks also provide many other services and are of great importance to the economy.
