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BANKS AND BUSINESS
Banks are different in different countries. Let's speak about the banks in the United States of America. There, commercial banks are classified into two main groups! First, there are national banks. They are charted and supervised by the Federal Government. Secondly. There are state banks. They are charted and supervised by the state in which they are operated^Ali commercial banks can make loans to borrowers. |
Major commercial banks in such cities as Tokyo, Paris, Rio cooperate with each other. In this way they finance imports and exports between countries.
An importer buys merchandise from another country using the currency of that country. For that purpose he buys this currency from the foreign exchange department of his bank. And in the same way if an exporter receives foreign money from sales to other countries, he sells this currency to his bank. By this method, the currency of any country can usually be exchanged.