Answer this, please
I will mark you brainiest
Answers
Step-by-step explanation:
What do the banks do with the deposits which they accept from the public? There is an interesting
mechanism at work here. Banks keep only a small proportion of their deposits as cash with
themselves. For example, banks in India these days hold about 15 per cent of their deposits as
cash. This is kept as provision to pay the depositors who might come to withdraw money from the
bank on any given day. Since, on any particular day, only some of its many depositors come to
withdraw cash, the bank is able to manage with this cash.
Banks use the major portion of the deposits to extend loans. There is a huge demand for loans for
various economic activities. Banks make use of the deposits to meet the loan requirements of the
people. In this way, banks mediate between those who have surplus funds (the depositors) and
those who are in need of these funds (the borrowers). Banks charge a higher interest rate on loans
than what they offer on deposits. The difference between what is charged from borrowers and
what is paid to depositors is their main source of income.
Answer the following MCQs by choosing the most appropriate option :
16.1 Banks keep 15% of the money in cash to- 1
i. Meet the government’s demand
ii. Be in safe side
iii. Deal with the cash demand of the depositors
iv. To get saved from bank failure
16.2 What do you think, from the following options which one is best suited central idea
of the passage? i. Bank Savings
ii. Loan activities of the bank
iii. Depositors and Borrowers
iv. Methods of income by the Baanks
16.3 The money used by bank to provide loans comes from 1
i. The Government
ii. The borrowers
iii. The bank deposits
iv. Private sector
16.4 The source of income of the bank is 1
i. Difference between deposits and lending
ii. Demand deposits
iii. Government’s regular funding
iv. Common people’s saving
Answer:
this may help you.........
