Question

The term 'Bank' is derived from the Italian word

• A. Banco
• B. Bancus
• C. Banque
• D. None of these

Answer 1

Answer:

A. Banco

INTRODUCTION & EVOLUTION OF BANKING

• Bank is institution authorised to collect peoples' saving or deposits with the purpose of lending those under the condition of returning when the depositor demand.
• The term 'Bank' is derived from the Italian word 'Banco', French word "Banque', Latin word Bancus, all of these means "Bench or exchange table" (The Jews in Lombardy (Itali) having benches in the market place for the exchange of money and bills.)
• German word "Bank" means - heap of money or joint stock fund
• If a banker failed, his Banque (Bench) was broken up by the people hence the word in simple term has come - Bankrupt
• Bankrupt means - A person who lost all the money, Wealth or Financial Resources
• The origin of banking, in the modern sense, is traced to Italy.