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1_______ are organizations that carry out the business of banking, taking deposits and then using those deposits to make loans. In essence, a bank 2_______ to make a profit by paying depositors a lower rate of interest than the rate the bank charges borrowers. In accounting terms, deposits are considered liabilities (because they have to be repaid), and loans are considered assets.
Banks in most countries are supervised by a 3_______ bank, such as the Bank of England in the United Kingdom, the Bundesbank in Germany, the Federal Reserve System in the United States and Central Bank in Russia.
There are many 4_______ types of bank, and the banking structure varies from one country to another.
banks
aims
central
different