"Banks are efficient medium of exchange". Support the statement with suitable example.
Answers
HI AMMU......!
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People deposit their money with banks by opening a bank account. Banks keep the money safe and provides interest on the deposited amount. The deposited money can be withdrawn from banks as when required on demand. Bank deposits also facilitate easy transfer of money through cheques, demand drafts and internet banking.
Banks keep only 15% of their total cash deposits to meet the everyday withdrawal demands of their customers. Major portion of the remaining deposits are used to give loans to people at specific rate of interest.
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HOPE IT HELPS YOU....✌️
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.......AthulKrishnaa....
Answer:
Hey Buddy here's ur answer
PEOPLE deposit their extra cash with banks by opening a bank account in their name. Banks accept the deposits and also pay an amount as interest on the deposits.
The deposited money can be withdrawn from banks as when required on demand. Bank deposits also facilitate easy transfer of money through cheques, demand drafts and internet banking.
Banks keep only 15% of their total cash deposits to meet the everyday withdrawal demands of their customers. Major portion of the remaining deposits are used to give loans to people at specific rate of interest.