[This is part of the series: The Complete Guide To Economics 101.]
What is a bank?
A Bank is an entity that accepts monetary deposits from the public.
In this, the bank issues the customer an account where deposited funds can be withdrawn on demand at a later date.
Banks also lend money to customers based on creditworthiness and regulated short-term interest rates.
I thought it was interesting that the word “bank” comes from the Italian word “banco.”
Banco translates as “table” or “bench” – the very surface where the banking business took root in the 14th century.