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I saw «Dank» is capitalized, but why not danke, because it's a verbal form?
(literally: thank you kindly/nicely)
(literally: thank you very)
(literally: many thanks)
(literally: heartfelt thanks)
Ich bedanke mich
(literally: I offer my thanks)
(literally: Best of thanks)
But on the same page, they use «"Nein, danke".
So I don't understand the rule. Someone?
Does it mean thanks or thank you?
Yes - danke means either of those.
Or is there. More form term than danke?
Not really more formal, but Vielen Dank! and Danke sehr! are a bit more polite or show a higher degree of gratitude.
Well, if you want formal, there is Ich bin Ihnen zutiefst zu Dank verpflichtet! but that is something along the lines of "I'm extremely grateful".
Tried translating with "thanks" and got me wrong. Is it really only "thank you"?
"Thanks!" is perfectly fine as a translation of danke!
For some unfathomable reason, it's not one of the accepted responses here at the moment.
Please report it as "my translation should be accepted" the next time you come across this exercise, and hopefully it will be added (back) eventually.