"suits" to the farmer dressed in Carharts, we all share one common link- banks. I can't imagine

one adult person in America who does not patronize a bank in way or another. Most of us use

banks quite frequently, but they are often casually regarded until you really stop to look at the

way a bank operates. The bottom line is that a bank is a business. Their goal of operation is to

generate a profit, just like any other business. The interesting fact, though, is that they do it by

The bank monitors its financial operations the same as any other business, by analyzing

their assets and liabilities in a form of balance sheet. Items categorized on a bank's balance sheet

are a little more complicated that most others because a line item, such as a loan, can technically

be an asset or a liability depending on the specifics of that line item. Even something as

seemingly simple as an account in which a customer deposits money may be an asset or a

of the contract. So while Joe Citizen is earning 3.5 % interest, you can bet that the bank is

into the business to draw customers with a pompous looking building with fountains and shiny

customer that has not made a late loan payment since I was nineteen years old.

the mistake was theirs, not mine. Did they do this because it was right and just? No, they did it

have a borrowing contract with. If neither of these are an option, the bank can borrow from the

when the loan is made. You may assume that a person with credit blemishes would then always

held at the bank for day to day operations. An additional portion of reserves is usually held at the

big difference between what one bank offers compared with another bank just down the road.

the amount of instant liabilities the bank is responsible for. In other words, the federal guidelines

bank is interested in making my $75,000 home loan even though the guy behind me is borrowing

schedule transfers of funds between my savings account and my commercial checking account to

Some common words found in the essay are:
Federal Reserve, Business Banks, Joe Citizen, Deposit CD, checking account, funds available, fixed length deposit, commercial checking account, asset liability depending, federal reserve bank, account commercial checking, example bank, businesses banks, money bank, bank business, balance sheet, reserve bank, added risk, borrowing bank,
Approximate Word count = 1391
Approximate Pages = 6 (250 words per page double spaced)