Chapter 1 Class 8 Economics - Introduction to Banks





An institution that deals with money and other financial transactions


Anything that is generally accepted as a medium of exchange, a unit of account, and a store of value

Financial transaction

An exchange of money or other financial assets between two or more parties


Money kept in a bank account by a customer


Money borrowed from a bank by a customer


A product that is intangible and does not involve the transfer of ownership

Money transfer

The movement of money from one place to another or from one person to another


A written order to a bank to pay a certain amount of money to a person or an organisation


The method of conducting banking transactions online via the internet


A person or an organisation that acts as a link between two or more parties


A person who keeps money for future use rather than spending it


A person who takes money from another person or an organisation and promises to pay it back later


To make something available for use or action


The part of income that is not spent or consumed

Surplus money

The amount of money that exceeds the required or desired amount

Productive purpose

The use of money or other resources to create goods or services that have value


The system of production, distribution, and consumption of goods and services in a country or a region

Type of bank

A category of bank based on its functions and features

Commercial bank

A bank that accepts deposits from the public and lends money to individuals and businesses for various purposes

Cooperative bank

A bank that is owned and operated by its members and provides cheap credit to them

Specialised bank

A bank that provides financial help to specific industries, foreign trade, or development activities

Central bank

A bank that manages, controls, and regulates the money supply and the interest rates in the economy and supervises the banking system


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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.