BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Although banks do many things, their primary role is to take in funds-called deposits-from those with money, pool them, and lend them to those who need funds. Banks are intermediaries between depositors (who lend money to the bank) and borrowers (to whom the bank lends money).

Detailed explanation-2: -Banks use their excess reserve balances to lend to other banks. The Federal Open Market Committee (FOMC) meets eight times a year to set the federal funds rate. 4 The committee sets a target for the rate, although banks don’t have to charge the exact rate. The rate charged is negotiated between the two banks.

Detailed explanation-3: -A commercial is that financial institution which accepts deposit from people and offers loan for the purpose of consumption or investment.

Detailed explanation-4: -Banks lend money to companies to encourage them to use business checking and savings accounts, financial advisory services, tax preparation services and even investment banking services in a different branch of the bank.