A bank trades money. Give reason.

1.	A bank trades money. Give reason.
Answer» In a business the businessman buys raw material or finished goods and sells it to others. He earns his profit by the difference he gets through selling goods. Similarly, bank accepts deposit in various forms and invests it and loans it to others. The difference in interest rate then becomes a bank’s profit. The way a trader buys and sells goods and earns profit a bank accepts and invests or lends money to earn profit. Hence, a bank trades money.

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