What is a bank?
Q: What is a bank?
A: A bank is a financial institution where customers can save or borrow money.
Q: What do banks do with the money they receive from customers?
A: Banks invest money to build up their reserve of money, and can use the money from deposit accounts to invest in businesses to make more money.
Q: Who regulates what banks do?
A: The laws that regulate what banks do differ in different countries, but what they do is regulated by laws.
Q: What do bank employees do?
A: The people who work at a bank are called bank employees.
Q: What are some things that customers can do with banks?
A: Customers can save money or take out loans with banks. An example is getting a mortgage to buy a house or apartment.
Q: Who is responsible for making rules for banks?
A: In most countries, the rules for banks are made by the government acting through laws.
Q: What is the role of a central bank?
A: A central bank, such as the Bank of England, adjusts how much money is issued at a particular time, which is a factor in the economy of a country. These "banks of issue" take in, and issue out, coins and banknotes.
