Chapter 1 Class 8 Economics - Introduction to Banks

What is a bank? 

  • A bank is an institution that deals with money and other financial transactions.

  • It accepts deposits from the public and lends money to individuals and businesses.

  •  It als o provides other services such as money transfer, cheque facilities, e-banking, etc.

  • A bank acts as an intermediary between savers and borrowers.

  • It mobilises the savings of people who have surplus money and makes it available to those who need it for productive purposes.

  • By doing so, it helps the economy to grow and develop.

  • There are different types of banks, such as commercial banks, cooperative banks, specialised banks and central banks.

  • Each type of bank has its own functions and features.
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Davneet Singh

Davneet Singh has done his B.Tech from Indian Institute of Technology, Kanpur. He has been teaching from the past 14 years. He provides courses for Maths, Science, Social Science, Physics, Chemistry, Computer Science at Teachoo.