Question

1. What do the banks do with the deposits which they accept from the
customers? 1
A Banks use these deposits for charitable activities
B. Banks use a major portion of deposits to extend loans.
C. Banks use deposits to give bonus to their employees
D. Banks use deposits to set up more branches in the country​

Answer 1

Answer:

Banks accept deposits from the public and use the major portion of these deposits to extend loans. ... Banks make use of these deposits to meet the loan requirement of the people and thereby earn interest. This is,infact, the main source of income of the bank.