"Bank plays an important role in the economic development of the country." Support the statement with
examples
5
Answers
Answer:
(i) They keep money of the people in its safe custody.
(ii) They give interest on the deposited money to the people.
(iii) They mediate between those who have surplus money and those who are in need of money.
(iv) They provide loan to large number of people at low interest rate.
(v) They promote agricultural and industrial sector by providing loans.
(vi) They also provide funds to different organizations.
Explanation:
Answer:
Bank plays an important role in the economic development of the country in many ways :
(i) Bank provides loans in rural areas for crop production, ultimately resulting in the development of many places.
(ii) Bank provides loans to create fixed assets that will create employment opportunities.
(iii) It acts as a link between savers and investors, i.e. people who have surplus money and those who are in need of money.
(iv) Banks accepts the deposit and pays an amount as interest on the deposit which mobilizes savings.
(v) Bank uses major portion of these deposits to extend loan for the industrial and agricultural sector. They also provide funds to different organisations.
Explanation: