Question

Прочитать текст. Дать письменные ответы на вопросы к тексту. Bank A banker or bank is a financial institution whose primary activity is to act as a payment agent for customers and to borrow and lend money. The first modern bank was founded in Italy in Genoa in 1406, its name was Banco di San Giorgio (Bank of St. George). Many other financial activities were added over time. For example banks are important players in financial markets and offer financial services such as investment funds. Banks have influenced economies and politics for centuries. Historically, the primary purpose of a bank was to provide loans to trading companies. Banks provided funds to allow businesses to purchase inventory, and collected those funds back with interest when the goods were sold. For centuries, the banking industry only dealt with businesses, not consumers. Banking services have expanded to include services directed at individuals, and risks in these much smaller transactions are pooled. Banks act as payment agents by conducting checking or current accounts for customers, paying cheques drawn by customers on the bank, and collecting cheques deposited to customers' current accounts. Banks also enable customer payments via other payment methods such as telegraphic transfer, EFTROS, and ATM. Banks borrow money by accepting funds deposited on current account, accepting term deposits and by issuing debt securities such as banknotes and bonds. Banks lend money by making advances to customers on current account, by making installment loans, and by investing in marketable debt securities and other forms of money lending. Banks provide almost all payment services, and a bank account is considered indispensable by most businesses, individuals and governments. Non-banks that provide payment services such as remittance companies are not normally considered an adequate substitute for having a bank account. Questions: 1. What is a bank? 2. When and where was the first modern bank founded? What was its name? 3. What was the primary purpose of a bank historically? 4. How do banks act? 5. How do banks borrow money? 6. How do banks lend money? 7. Why is a bank account considered indispensable by most businesses, individuals and governments?

Answer 1

1. A bank is a financial institution which deals with money.

2. The first modern bank was founded in Italy, Genoa, in 1406.

3. Historically, the primary purpose of a bank was to provide loans to trading companies.

4. Banks act as payment agents for customers.

5. Banks borrow money by accepting funds deposited on current account, accepting term deposits and issuing debt securities.

6. Banks lend money by making advances to customers on current account, making loans and investing in debt securities.

7. Because banks provide almost all payment services.

Answer 2

Bank

A bank is a financial institution that primarily acts as a payment agent for customers and provides borrowing and lending services. Banks play a crucial role in financial markets and offer various financial services, including investment funds. They have had a significant influence on economies and politics for centuries [[1]].

The First Modern Bank

The first modern bank was founded in Italy in Genoa in 1406. It was called Banco di San Giorgio, also known as the Bank of St. George [[1]].

Historical Purpose of Banks

Historically, the primary purpose of a bank was to provide loans to trading companies. Banks would provide funds to businesses to purchase inventory, and they would collect those funds back with interest when the goods were sold. Initially, the banking industry focused on dealing with businesses rather than consumers [[1]].

How Banks Act

Banks act as payment agents by conducting checking or current accounts for customers, paying cheques drawn by customers on the bank, and collecting cheques deposited to customers' current accounts. They also enable customer payments through other methods such as telegraphic transfer, EFTROS, and ATM. In addition, banks offer services directed at individuals, and risks in smaller transactions are pooled [[1]].

How Banks Borrow Money

Banks borrow money by accepting funds deposited on current accounts, accepting term deposits, and issuing debt securities such as banknotes and bonds [[1]].

How Banks Lend Money

Banks lend money in various ways. They make advances to customers on current accounts, provide installment loans, and invest in marketable debt securities and other forms of money lending [[1]].

Importance of Bank Accounts

A bank account is considered indispensable by most businesses, individuals, and governments because banks provide almost all payment services. Having a bank account allows businesses to conduct transactions, individuals to manage their finances, and governments to handle financial operations. While there are non-bank payment service providers like remittance companies, having a bank account is generally considered essential for a wide range of financial activities [[1]].

Answers to the Questions:

1. What is a bank? - A bank is a financial institution that acts as a payment agent for customers and provides borrowing and lending services [[1]].

2. When and where was the first modern bank founded? What was its name? - The first modern bank was founded in Genoa, Italy, in 1406. It was called Banco di San Giorgio or the Bank of St. George [[1]].

3. What was the primary purpose of a bank historically? - Historically, the primary purpose of a bank was to provide loans to trading companies and facilitate business transactions [[1]].

4. How do banks act? - Banks act as payment agents, conducting checking or current accounts, paying cheques, collecting cheques, and enabling customer payments through various methods [[1]].

5. How do banks borrow money? - Banks borrow money by accepting funds deposited on current accounts, accepting term deposits, and issuing debt securities like banknotes and bonds [[1]].

6. How do banks lend money? - Banks lend money by making advances to customers on current accounts, providing installment loans, and investing in marketable debt securities and other forms of money lending [[1]].

7. Why is a bank account considered indispensable by most businesses, individuals, and governments? - A bank account is considered indispensable because banks provide almost all payment services, and having a bank account allows for efficient financial management and transactions. While there are alternative payment service providers, having a bank account is generally considered essential for a wide range of financial activities [[1]].