Definiton, and why
2007-12-18 05:12:39 · 4 answers · asked by Anonymous in Business & Finance ➔ Investing
revolving credit......don't know why,sorry
2007-12-18 05:20:54 · answer #1 · answered by pizzaman 3 · 0⤊ 0⤋
A bank is an institution that accepts deposits and extends credit on those deposits.
It takes unused capital in the form of money and lends it to parties that need capital. It serves society as a filter, connected people with excess capital with people who have a shortage of capital. In the process of maximizing its profits, it also maximizes societal welfare by permitting economic growth where it could not otherwise occur.
2007-12-18 10:14:33 · answer #2 · answered by OPM 7 · 0⤊ 0⤋
Well you need banks to handle your money. If you want to pay your bills with cash by all means. I'm just saying something like that can get "lost" at the post office pretty easily.
2007-12-18 10:14:38 · answer #3 · answered by JosefStalinsTroll 6 · 0⤊ 0⤋
bank is the one who controls the liquidity in the market....that is controls the money supply.too much of anything is not good.so everting has to go through bank!!!
2007-12-18 05:50:44 · answer #4 · answered by Deep eyes 3 · 0⤊ 0⤋