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What are four ways banks safeguard money?
Delegated authority and separation of dutiesReconciliation (check written records with reality)Cash controlPhysical control
Where do banks bank their money?
Banks receive their funds - the money which belongs to them - in the form of interest from mortgages, loans, etc. They also use a large portion of the money they are intended to safeguard from customers, sublending it in turn. They receive their cash - the money in paper and coinage form - from special factories called mints; this is both directly and indirectly as all money must originate in a mint at some point. Mints produce the money, and it is given to the banks in exchange for funds in the form of an account; customers also deposit cash they have received from other sources indirectly receiving it from the mint. Some banks also have permission to print and form their own money, for example three banks in China, in addition to the official or government mint. ^^This
How bank create money?
Money is CREATED by governments, not banks. They store money. Banks also EARN money by loaning money to people. People pay the banks back more money than they borrow (interest)
Do banks iron money?
Banks do not iron money as this would burn it. The Royal Mint, who make the money, make it flat when it is made, and then send it to the banks like this. Ironing money is not recommended :)
How do banks use money?
they use money for money
Are banks out of money?
no
Who lend money?
Money lenders and banks.
How does bank earn profit?
The way banks earn money is basically a two-step process. First, banks borrow money from other banks as well as from their depositors. The banks then loan that money out to businesses and people, and charge them a higher rate of interest than they are paying on the money. Banks also earn money by charging fees for services they offer.
Why do banks give interest on deposit?
Banks make money by lending money to people and charging people for borrowing. The amount banks charge is called interest. Banks borrow money from other people and pay them interest on the amount borrowed. Banks charge more interest on the money they lend than they pay one the money they borrow. That is how they make money. When people deposit money with a bank, the bank is literally borrowing money from some people so they can lend it to other people. That is why banks pay interest.
How banks work?
Banks take your money and buy mcdonalds
Why banks have not eliminated the need for the money markets.?
Banks ARE the money markets. They are hardly likely to eliminate themselves.
Commercial banks and their relationship with the reserve bank?
we take/borrow money from the commercial banks and the commercial banks take/borrow money from the reserve bank
