Question

" Banks need to channelize household savings into financial system " What does it mean ?

Answer 1

Heya...

Answer _______

• Yeah, it's an Economic statement that " Banks need to chanalize household savings into financial system..."

• This refers to the need of deposit the extra money of public into banks..

• Actually still there are many people in India who have no their bank accounts and they used to save the money at home not in banks..

• By this the money be out of the economy and the reduction of money creation leads to less economic capicity...

• So bank have to promote the deposits Money in banks with financial system to increase the money creation capicity ...

Thank you

Answer 2

Hey dear ::::

Banks need to channelize household savings into financial system " What does it mean ???

Answer ;;;;

Yes, bank need to chanalize the household savings into financial system , because to rise the money creation capicity of the bank.

Savings r leaked to economy so to remove it.