Whenever some people wish to enter into the business world, it is a must for them to approach a bank. What services do banks provide them in this regard?begin{enumerate}item Banks act as payment agents by operating current accounts, paying cheques and receiving payments for them.item Maintaining account books for them for their day-to-day activities so that they are not required to appoint account/finance personnel on a regular basis.item Lending money by way of overdraft, instalment loan, credit or advance for business activitiesend{enumerate}

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Whenever some people wish to enter into the business world, it is a must for them to approach a bank. What services do banks provide them in this regard?

A	Only 1
B	Only 2
C	Only 3
D	Only 1 & (3)

Explanation:

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: -They make money from what they call the spread, or the difference between the interest rate they pay for deposits and the interest rate they receive on the loans they make. They earn interest on the securities they hold.

Detailed explanation-3: -People deposit their money in banks; the bank lends the money out in car loans, credit cards, mortgages, and business loans. The loan recipients spend the money they borrow, the bank earns interest on the loans, and the process keeps money moving through the system.

There is 1 question to complete.