bank
Banks
A brief introduction to banks and banking.
Vocabulary
| establishment | safe (2) | safeguard |
| loan | investment | rather than |
| provide | easy | way |
| pay/paid/paid | bill (2) | deposit |
| account | earn | additional |
| actually | lend | loan |
| interest (2) | fund | essential |
| activity | borrow | equipment |
| build | factory | enough |
| full | price | promote |
| sale | wide | range |
| goods | service | since |
| international | increase | multinational |
| spread | operation | worldwide |
| require | wherever | good/better/best |
| communication | create | finance/financial |
| never | shut | pass (2) |
| border | borderless | difficult |
| supervise | market (2) | affect |
| technology | possible | transfer |
| place | country (2) | another |
| quickly | plastic | card |
| credit | cash | dispenser |
| instantly | debit |
Banks
A bank is a business establishment that safeguards people’s money and uses it to make loans and investments.
People keep their money in banks rather than at home for several reasons. Money is safer in a bank than at home. A current account (check account) with a bank provides an easy way to pay bills.
Loans and Interest
Also, money deposited in many types of bank accounts earns additional money for the depositor. People who put money in a bank are actually lending it to the bank, which may pay them interest for the use of their funds.
Borrowing Money
Banks are an essential part of business activity. Companies borrow from banks to buy new equipment and build new factories. People who do not have enough money to pay the full price of a home, a car, or some other product also borrow from banks.
In these ways, banks promote the sale of a wide range of goods and services.
International Banking
Since the 1960’s, banking has become more international. This is because of the increase in the number of multinational companies and the spread of their operations worldwide. Such companies require the services of banks wherever they are.
Better communications have created financial markets that never shut. Business is passed from Asia to Europe, to the United States, and back to Asia. This borderless banking market is difficult to supervise.
New Technology
Banking has also been affected by new technology, which has made it possible for money to be transferred from one place, or country, to another very quickly. Many people now use plastic cards, which give them credit, cash from cash dispensers, or instantly debit their accounts.
1. Most people have bank accounts and keep money in savings deposits. Why do people keep money in the bank?
2. What services do banks provide?
3. Why do people take out loans from banks? Why do people borrow money from banks?
4. Most banks used to operate only locally or nationally. True or false?
5. What have been some modern developments in banking?
A. All my colleagues have bank accounts. Yes or no?
B. Do some people keep all their savings in a jar or under their bed?
C. Have there ever been banking crises? If yes, why did this happen?
D. I would like to work in a bank. Is this correct or wrong?
E. Working in a bank is very prestigious. Do you agree?
F. Large banks and multinational corporations control the world. What do you think?
G. Are banks frequently or seldom robbed?
