Question

explain loan activities of banks

Answer 1

Loan activities of the bank. ... 1) Banks keep a small proportion of their deposits as cash with themselves to pay the depositors who might come to withdraw money from the bank on any given day. 2) Banks use the major portion of the deposits to extend loans.

Answer 2

Loan is a way by which the bank gives a person some money for his need and applies an interest on the money taken .The person can pay the money back whenever before the time given by bank.