Question

Banks play an important role in the economy. Which of the following statements is NOT true about the functioning of banks?
Banks charge a high-interest rate on loan than what they provide on deposits.
A major portion of the depositor’s money is used to extend loans.
Banks maintain about 40 per cent of their total deposits as cash.
Banks facilitate transactions without payment of cash​

Answer 1

Answer:

As a key component of the financial system, banks allocate funds from savers to borrowers in an efficient manner. ... They provide specialized financial services, which reduce the cost of obtaining information about both savings and borrowing opportunities.

Answer 2

Answer:

Banks facilitate transactions without payment of cash