BANKING
A bank is a business that provides banking services for profit. Traditional banking services include receiving deposits of money, lending money, and processing transactions. Some banks (called Banks of Issue) issue banknotes as legal tender. Many banks offer ancillary financial services to make additional profit; for example: selling insurance products, investment products, or stock broking. Currently in most jurisdictions the business of banking is regulated and banks require permission to trade. Authorization to trade is granted by bank regulatory authorities and provides rights to conduct the most fundamental banking services such as accepting deposits and making loans. There are also financial institutions that provide banking services without meeting the legal definition of a bank. Traditionally, a bank generates profits from transaction fees on financial services and from the interest it charges for lending. In recent history, with historically low interest rates uniting banks' ability to earn money by lending deposited funds, much of a bank's income s provided by overdraft fees and riskier investments. Although the type of services offered by a bank depends upon the type of bank and the country, services provided usually include: - Taking deposits from their customers and issuing checking and savings accounts to individuals and businesses - Extending loans to individuals and businesses - Cashing cheques - Facilitating money transactions such as wire transfers and cashier's checks - Issuing credit cards, ATM cards, and debit cards - Storing valuables, particularly in a safe deposit box - Cashing and distributing bank rolls - Consumer & commercial financial advisory services - Pension & retirement planning Financial transactions can be performed through several different channels: - A branch, banking centre or financial centre is a retail location where a bank or financial institution offers a wide array of face-to-face service to its customers - ATM is a computerized telecommunications device that provides a financial institution's customers a method of financial transactions in a public space without the needs for a human clerk or bank teller - Mail is part of the postal system which itself is a system wherein written documents typically enclosed in envelopes, and also small packages containing other matter, are delivered to destinations around the world - Telephone banking is a service provided by a financial institution which allows its customers to perform transactions over the telephone - Online banking is a term used for performing transactions, payments, etc., over the Internet through a bank, credit union or building society's secure web-site 1. Match the words with the definitions:
1. to issue a. providing additional services 2. ancillary b. money which is lent 3. deposit c. to produce smth printed and/or official 4. loan d. a bank account which earns interest 5. overdraft e. an act of placing money in a bank 6. bankroll f. a small printed sheet of paper supplied by a bank 7. checking account g. a sum lent by a bank to a person who has overdrawn 8. savings account h. Am.E. a supply of money 9. cheque i. a bank account which usually does not earn interest and from which money can be taken out at any time by cheque 10. branch k. a part or division of a large organization (ex. bank)
2. Complete the sentences using the words from the box:
1. A bank is a business that provides banking... for profit. 2. Authorization... is granted by bank regulatory authorities. 3. Much of a bank's income is provided by... fees and riskier.... 4. Bank services include extending... to individuals and businesses,... cheques, etc. 5. Financial... can be performed through several different channels: a branch, ATM! mail, telephone and online....
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