A bank is a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly by loaning or indirectly through capital markets. A bank links customers that have capital deficits and customers with capital surpluses. Due to their importance in the financial system and influence on national economies, banks are highly regulated in most countries Banks act as payment agents by conducting checking or current accounts for customers, paying HYPERLINK "http://en.wikipedia.org/wiki/Cheque" \o "Cheque" cheques drawn by customers on the bank, and collecting cheques deposited to customers' current accounts. Banks also enable customer payments via other payment methods such as Automated Clearing House (ACH), Wire transfers or telegraphic transfer, EFTPOS, and automated teller machine (ATM). Banks borrow money by accepting funds deposited on current accounts, by accepting term deposits, and by issuing debt securities such as banknotes and bonds. Banks lend money by making advances to customers on current accounts, by making installment loans, and by investing in marketable debt securities and other forms of money lending. Banks provide different payment services such as cards, collection services, cash management services, foreign exchange.. Banking business also includes money broker, consulting (finance, M&A), safe keeping, buying – selling money… WHAT ARE SERVICES?
Services involve a form of rental, offering, benefits without transfer of ownership Include rental of goods
Marketing tasks for services differ from those involve in selling goods and transferring ownership BASIC DIFFERENCES BETWEEN GOODS AND SERVICES
Almost all things can be separated into goods and services. These are very different from each other, though in today’s world there are a variety of companies that offer both goods and services. Hence, it is often overlapping and companies are trained in both to offer proper goods as well as adequate services. In economics, goods are considered as tangible objects. These are obviously things that you can see, touch, smell, taste, etc. In order for a good to be classified as good, it must something a person can hold, taste, consume or use. Goods are also easily transferable from one person to another. Goods also have a physical dimension and take up space someplace. Dictionary.com defines ‘goods’ as, “possessions, especially movable effects or personal property; articles of trade; wares; merchandise.” Goods are often acquired in exchange of money or earlier it was traded for another good (i.e. wheat for rice, etc.). Goods also do not require interaction with the customer. Goods are often made in factories where they are separate from the customers. After the good is prepared in the factory, workshop, etc. is it sold to the customer. Another feature of goods is that it does not change or modify day to day, it is a repetitive process. For example a company producing toothpaste, does not continuously keep changing the process or the ingredients of the toothpaste. The ingredients and process for creating the toothpaste remain the same time and time again. Lastly, many goods are also not perishable, though some such as foods or medicines are. Goods can be kept for months or years depending on the product. Services are something completely different from goods. Services are intangible commodities that cannot be touch, felt, tasted, etc. They are the opposite of goods, where goods are something that can be traded for money; services are when you hire a person or someone to do something for you in exchange of money. Services are usually hired or rented, they cannot be owned like goods can. Since it requires people and one cannot legally own a person in today’s world, services can only be for hire. Services are often described by using five key characteristics: Intangibility, Perishability, Inseparability, Simultaneity and Variability. They are insubstantial...
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