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** This lesson is generated with AI assistance and approved by Danny Nelson. This lesson will communicate the essence of the topic for now until Danny can create a full lesson. **
A bank is a financial institution that primarily accepts deposits from individuals and businesses, safeguarding their money while often paying interest on those deposits.
It uses these deposited funds to provide loans and credit to borrowers, charging interest to generate profit and facilitate economic growth.
Banks also offer a range of services such as checking and savings accounts, payment processing, investment advice, and wealth management to meet diverse financial needs.
They operate under regulatory oversight to ensure stability, security, and trust in the financial system.
Overall, banks play a crucial role in the economy by intermediating between savers and borrowers, promoting liquidity and capital allocation.
Take the quiz: What is the primary function of a bank?