Hey Guys its me again artistic_opinion. Today we will be dissusing what do banks do. In the most recent session of burnet news club we disscussed about the new topic and we watched a few videos . Just so you know I got this information from the burnet news club video at school . So without further ado lets begin...
What is a bank?
A bank is a financial institution. This means it is a place where money and other things to do with finances go. Lots of banks make money and they keep Loans. You might be asking What is a Loan? Well, a loan is money that you borrow from the bank and every month you pay back some of the money. When giving back money for a loan, you will need to give extra this is just because it is a way of saying 'Thank you' to the bank for lending money.
If Ben was buying a house and it costs £20.000. If he asks the bank for a morgage/loan, he would have to to pay the £20.000 but maybe with an extra of £5.000 as a thank you. With the money that has been given extra, the bank pays the staff, for profit and for working at ; keeps some with there self so that it can give more loans etc.
What does a bank do?
Banks store money. This means if you have a bank account you can save your money there and not in your home. In a bank your money is well protected. The bank of england is like the head bank. They set the rules that al other banks in England have to follow. The bank of england own 5,134 tonnes of gold.
I hope you found todays post very informative and I hope it inspires you to make other good posts!