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In general terms, the business of accepting and protecting the money belonging to other individuals and entities and then lending out this money in order to earn a profit termed as baking and the bank is an organization or a corporation, chartered by a state or federal government, which receives demand deposits and time deposits, honors instruments drawn on them and pays interest, discounts notes, makes loans, invests in securities, collects checks, drafts and certifies depositor's checks and issues drafts and cashier's checks to name some of the most important financial activities carried out by banks.

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