An institution that receives, keeps, and lends money is a

• A. Taxes
• B. Online Banking
• C. Bank
• D. Income

Answer: (C)

A bank is an institution that handles money in three main ways: it receives money from people as deposits, keeps that money safe and organized, and lends money to others who need it. Deposits are like putting money in a safe place where you can access it later. Banks also lend out some of that money to customers who want to borrow for big purchases or other needs, and they earn a little by charging interest on those loans. This combination—taking in money, safeguarding it, and providing loans—is what defines a bank.

Taxes, online banking, and income describe other things. Taxes are payments to the government; online banking is a way to access bank services online, not a type of institution; and income is money you earn from work or investments. None of these describe an institution that both receives, keeps, and lends money.