What do the banks do with …

CBSE, JEE, NEET, CUET

Question Bank, Mock Tests, Exam Papers

NCERT Solutions, Sample Papers, Notes, Videos

Install Now

What do the banks do with the deposits which they accept from the public

Posted by Sunita Swain 5 years, 4 months ago

CBSE > Class 10 > Social Science

1 answers

Yogita Ingle 5 years, 4 months ago

BANKS keep only a small proportion of their deposits as cash with themselves. Banks in India, these days hold about 15 per cent of their deposits as cash.

This is kept as a provision to the depositors who might come to withdraw money from the bank on any given day.
Banks use the major portion of the deposits to extend loans. There is a great demand for loans for various economic activities. In this way, banks mediate between those who have surplus funds and those who are in need of these funds.
Banks charge a higher interest rate on loans than what they offer on deposits.
The difference between what is charged from the borrowers and what is paid to depositors is their main source of income.

0Thank You

ANSWER

Test

Related Questions

What was act of 1919 which was set up by Government of India

Posted by Kapil Dev Saroye 1 year, 5 months ago

CBSE > Class 10 > Social Science

0 answers

What was the purpose of sending the Simon Commission

Posted by Siddhanth Aravind 1 year, 2 months ago

CBSE > Class 10 > Social Science

0 answers

How can more employment opportunities be created in the rural areas

Posted by Sai Sravika Godavarthi 4 months, 2 weeks ago

CBSE > Class 10 > Social Science

1 answers

Define Deccan plateau briefly

Posted by Anisha Grover 4 months, 1 week ago

CBSE > Class 10 > Social Science

0 answers

Describe the silesian weavers uprising

Posted by Chirag Jindal 1 year, 5 months ago

CBSE > Class 10 > Social Science

0 answers

What was zollverein formed

Posted by Sakshi Patel 1 month ago

CBSE > Class 10 > Social Science

1 answers

This content has been hidden. One or more users have flagged this content as inappropriate. Once content is flagged, it is hidden from users and is reviewed by myCBSEguide team against our Community Guidelines. If content is found in violation, the user posting this content will be banned for 30 days from using Homework help section. Suspended users will receive error while adding question or answer. Question comments have also been disabled. Read community guidelines at https://mycbseguide.com/community-guidelines.html

Few rules to keep homework help section safe, clean and informative.

Don't post personal information, mobile numbers and other details.
Don't use this platform for chatting, social networking and making friends. This platform is meant only for asking subject specific and study related questions.
Be nice and polite and avoid rude and abusive language. Avoid inappropriate language and attention, vulgar terms and anything sexually suggestive. Avoid harassment and bullying.
Ask specific question which are clear and concise.

Remember the goal of this website is to share knowledge and learn from each other. Ask questions and help others by answering questions.

Posted by Shristi Pandey 2 months, 1 week ago

CBSE > Class 10 > Social Science

0 answers

Explain the process of unification of Germany

Posted by Sudhanshu Choudhry 1 year, 5 months ago

CBSE > Class 10 > Social Science

1 answers

Describe the process of unification Italy

Posted by Armaan Ali 1 year, 5 months ago

CBSE > Class 10 > Social Science

1 answers

What is the importance of flora and fauna in india

Posted by Vansh Singh 1 year, 5 months ago

CBSE > Class 10 > Social Science

1 answers

myCBSEguide

CBSE, JEE, NEET, CUET

myCBSEguide

Test Generator

CUET Mock Tests

Download myCBSEguide App

All Courses

Other Websites

CBSE Courses

Resources

Corporate

NCERT Solutions

CBSE Sample Papers