Question

Explain any three loan activities of banks in india

Answer 1

* Bank provided loans for various economic activities
* Banks keep only a small proportions of the deposits with them as cash
* These deposits are used to meet the loan requirement

Answer 2

Three loan activities of banks in India are as follows;

Bank granted credits for different commercial activities

Banks hold only a small balance of the deposits with them as security

These securities are managed to satisfy the loan obligation.

Bank intermediates among those who have excess funds and those who are in requirement of the funds.