Banking Types

This passage explains the various types of banks and their distinct roles in the economy. It covers commercial banks, which handle everyday banking needs such as deposits and loans, and investment banks, which assist businesses in raising money through stocks and bonds. It also describes central banks that manage a country’s currency and monetary policy, as well as cooperative banks that are owned by their members. Lastly, it highlights development banks, which fund long-term projects in areas like infrastructure and healthcare to promote national development.

Reading passages like this enhance students’ vocabulary by introducing banking-related terms like investment, monetary policy, and development projects. It fosters comprehension skills by challenging students to distinguish between the roles of different banks and their impact on the economy. This type of reading promotes critical thinking, as students can explore how each banking type contributes to financial stability and growth. Furthermore, students improve their grammar proficiency by examining how the passage uses structure to explain each bank’s function in a clear and organized way.