Question

deposit with banks are benefitting to the depositor as well as the nation

Answer 1

Deposits with the banks are beneficial to the depositors as well as to the nation.

Benefits to the Depositors:

1.Banks accepts the deposits and pay interest to the depositor.

2.People’s money is safe with the banks.

3.People can withdraw the money as and when they require.

Benefits to the Nation:

1.Banks use money of the depositor to afford loans.

2.There is a huge demand for loans for various economic activities.

3.Banks mediate between those who have surplus funds and those who are in need of these funds. Thus it helps in the economic development of the nation.