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ML Aggarwal Solutions for Class 10 Maths Chapter 2 Banking


A bank is a financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be performed either directly or indirectly through capital markets. Banks may also provide financial services such as wealth management, currency exchange, and safe deposit boxes. There are several different kinds of banks, including retail banks, commercial or corporate banks, and investment banks .A well-functioning financial system is fundamental to a modern economy, and banks perform important functions for society. Banks should be able to lend money to consumers and businesses in both upturns and downturns. Also, payments for goods and services should be processed swiftly, safely and at low cost. Banks' Primary functions include accepting deposits, granting loans, advances, cash, credit, overdraft and discounting of bills. - Secondary functions include issuing a letter of credit, undertaking safe custody of valuables, providing consumer finance, educational loans, etc. Financial institutions pay the deposit interest rate to deposit account holders. Deposit accounts include certificates of deposit (CD), savings accounts, and self-directed deposit retirement accounts. Maturity value is the amount payable to an investor at the end of a debt instrument's holding period (maturity date).