Bank
Definition
A bank is a financial institution that accepts deposits from individuals and businesses, and provides loans and other financial services.
Analogy
Think of a bank as a "money warehouse" where people can store their money for safekeeping, and where they can also borrow money when needed. Just like a warehouse holds goods, banks hold money.
Related terms
Deposit: Money placed into a bank account for safekeeping.
Interest: The cost of borrowing money or the return on saving/investing money.
Reserve Requirement: The percentage of deposits that banks are required to hold as reserves by the central bank.
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