What is the primary function of a bank?

The primary function of a bank is to accept deposits, provide loans, facilitate payments, and offer various financial services to individuals, businesses, and governments, acting as a crucial intermediary in the economy.

How do banks generate revenue?

Banks primarily generate revenue through the 'net interest margin' (the difference between interest earned on loans and paid on deposits), fees for services like account maintenance or transactions, and investment activities.

What role do central banks play in the financial system?

Central banks manage monetary policy, regulate commercial banks, maintain financial stability, and issue currency. Their goal is to control inflation, promote economic growth, and ensure the stability of the national financial system.