Question

"Banks use the major portion of deposits to extend loans." Explain.

Answer 1

Answer:

HELLO DEAR ♥

LOAN ACTIVITIES OF BANKS :-

♡ THEY KEEP ONLY A SMALL PROPORTION OF THEIR DEPOSIT AS CASH WITH THEMSELF

♡ THE MAJOR PROPORTION OF DEPOSITS IS EXTENDED AS LOANS

♡ THERE IS HUGE DEMAND FOR LOANS IN VARIOUS ECONOMIC ACTIVITIES

♡ BANKS HOLD ONLY ABOUT 15% OF THEIR DEPOSIT AS CASH

♡ THEY CHARGE HIGH RATE OF INTEREST ON THE LOANS

HOPE IT HELPS !!!

GUD NI8 ^o^

Answer 2

ɓαɳҡร µรε ƭɦε ɱαʝσɾ ρɾσρσɾƭเσɳ σƒ ƭɦε ∂ερσรเƭร ƭσ εאƭεɳ∂ ℓσαɳร

❤ ƭɦεყ ρɾσѵเ∂ε ѵαɾเεƭყ σƒ ℓσαɳร ƭσ cσɳรµɱεɾร . ƭɦεყ เɱρσรε ɦเɠɦ ɾαƭε σƒ เɳƭεɾεรƭ σɳ ɱσɾƭɠαɠεร . ❤

ɦσρε เƭ ɦεℓρร :)

ƒσℓℓσω ɱε ❤❤