Below you have a short written passage about ‘How Banks Work’. Read and understand the passage before writing a summary. The summary should be shorter than the original but still contain all the main information. Remember to use new sentences and vocabulary so that it is different from the original.

The world of banking is a complex and fascinating realm that has long piqued the

interest

Use synonyms

of individuals. At its core, a

bank

Use synonyms

's primary function is to cater to two distinct customer groups: those who wish to save money and those who seek to borrow it.

While

Linking Words

it is possible for an individual to belong to both categories, understanding the roles of

savers

Use synonyms

and

borrowers

Use synonyms

is crucial in grasping the fundamental operations of a banking

system

Use synonyms

.

This

Linking Words

essay will argue that the interdependence of

savers

Use synonyms

and

borrowers

Use synonyms

is the backbone of the banking

system

Use synonyms

, with each playing a vital role in the other's financial journey. On one hand,

savers

Use synonyms

deposit their money into the

bank

Use synonyms

, which earns

interest

Use synonyms

on their deposited amount, providing an incentive to continue saving.

This

Linking Words

interest

Use synonyms

serves as a reward for allowing the

bank

Use synonyms

to utilize its deposited

funds

Use synonyms

for other purposes.

This

Linking Words

process is made convenient through various channels, including online banking, where deposits can be made electronically, and physical

bank

Use synonyms

branches, where cash or cheques can be handed over to a teller. The

savers

Use synonyms

,

therefore

Linking Words

, play a crucial role in providing the

bank

Use synonyms

with the necessary

funds

Use synonyms

to facilitate lending to

borrowers

Use synonyms

.

On the other hand

Linking Words

,

borrowers

Use synonyms

, who seek to obtain a

loan

Use synonyms

from the

bank

Use synonyms

, need to meet with the

bank

Use synonyms

manager, who assesses their creditworthiness and decides the

loan

Use synonyms

amount based on factors

such

Linking Words

as income and repayment capacity. The

bank

Use synonyms

manager's assessment is critical in determining the borrower's ability to repay the

loan

Use synonyms

, ensuring that the

bank

Use synonyms

's risk is minimized. The borrower, in turn, receives the necessary

funds

Use synonyms

to finance their projects, businesses, or personal needs. The borrower's ability to repay the

loan

Use synonyms

is,

therefore

Linking Words

, dependent on the saver's willingness to deposit their money in the

bank

Use synonyms

. The interdependence of

savers

Use synonyms

and

borrowers

Use synonyms

is the cornerstone of the banking

system

Use synonyms

.

Savers

Use synonyms

provide the

bank

Use synonyms

with the necessary

funds

Use synonyms

, which are

then

Linking Words

lent to

borrowers

Use synonyms

. The

interest

Use synonyms

earned by

savers

Use synonyms

is a direct result of the

bank

Use synonyms

's ability to lend to

borrowers

Use synonyms

, who in turn, repay the

loan

Use synonyms

with

interest

Use synonyms

.

This

Linking Words

cycle of deposit, lending, and repayment is the lifeblood of the banking

system

Use synonyms

. The

bank

Use synonyms

,

therefore

Linking Words

, serves as an intermediary, facilitating the flow of

funds

Use synonyms

between those who have excess capital and those in need of financing. In conclusion, the banking

system

Use synonyms

relies heavily on the interdependence of

savers

Use synonyms

and

borrowers

Use synonyms

. Each plays a vital role in the other's financial journey, with

savers

Use synonyms

providing the necessary

funds

Use synonyms

and

borrowers

Use synonyms

utilizing these

funds

Use synonyms

to achieve their financial goals. The

bank

Use synonyms

, as an intermediary, facilitates

this

Linking Words

process, ensuring that the flow of

funds

Use synonyms

is smooth and efficient. Understanding the intricacies of banking,

therefore

Linking Words

, requires a comprehensive grasp of the interdependent roles of

savers

Use synonyms

and

borrowers

Use synonyms

, without which the banking

system

Use synonyms

would cease to function.