What is Banking?

Answer:
Banking refers to the activities involved in the exchange of monies between an institution (bank)

and other institutions, organizations or individuals. The purpose of this exchange is generally to keep money in a safe location and have access to the services the bank provides.

Consumer banks specialize in services to individuals and businesses. These services might include a savings account which earns interest because the bank is allowed to lend out one's money to others who pay it back with interest, some of which is paid back to the person's savings account.

Loans are another service of many banks. Investment banks are another category of bank that specialize in pooling money together to invest in companies seeking to start up or expand operations, thus providing a financial return for those who have invested.