Question

1. How do the deposite with the banks become their source of income ?​

Answer 1

Answer:

Banks use the major portion of the deposits with them to extend loans. ... Banks charge a higher interest rate on loans than what they pay on the deposits. The difference between interest rate charged from the borrowers and what is paid to the depositors is, thus, the main source of income for the banks

Answer 2

Explanation:

banks use a major portion of the deposits to extend loans to people for various economic activities.

Therefore, the difference between what is charged from the borrowers and what is paid to the depositors is the source of income of the banks.

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