Deposit with the banks are beneficial to the depositers as well as to the nation.Explain the statement.
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1) banks only keep a small portion of money deposited with them about 15% to pay the depositors who may come to withdraw money on a given day.
2) banks use the major portion of the money to lend loan to people who are in need of funds.
3) the depositors benefit from banks by depositing money with them as they are given interest on the funds deposited.
4) as banks lend money to people in need, many people are able to establish their own small scale enterprise, increase their production in fields, or increase their employment opportunity or increase their income and at the same time adding to the total income of the country and decreasing the problem of unemployment and increasing the number of working force in the country.
5) thus the depositors also benefit and the nation develops too.
2) banks use the major portion of the money to lend loan to people who are in need of funds.
3) the depositors benefit from banks by depositing money with them as they are given interest on the funds deposited.
4) as banks lend money to people in need, many people are able to establish their own small scale enterprise, increase their production in fields, or increase their employment opportunity or increase their income and at the same time adding to the total income of the country and decreasing the problem of unemployment and increasing the number of working force in the country.
5) thus the depositors also benefit and the nation develops too.
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