"Banks use the major portion of deposits to extend loans." Explain.
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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^
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ɓαɳҡร µรε ƭɦε ɱαʝσɾ ρɾσρσɾƭเσɳ σƒ ƭɦε ∂ερσรเƭร ƭσ εאƭεɳ∂ ℓσαɳร
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ɦσρε เƭ ɦεℓρร :)
ƒσℓℓσω ɱε ❤❤
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