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Banks are the government-licensed financial institutions which primary deal with the lending of money in an economy to boost the economic growth. There are different types of banks which are aimed to carry out different functions in the economy like depository banks or commercial banks help the people to save or deposit their money. The money is further lent to the businesses on some interest. In this way banks act as an intermediary to transfer money from those who have money to those who need it to operate businesses. Banks are the important players in the financial markets and they also offer financial services to the consumers and businesses. Therefore, banks are considered very important for an economy.
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