Question

explain the concept of primary deposit?what does it indicate.​

Answer 1

Answer:

When the borrower withdraws money from his loan account by a cheque, it is deposited by the payee in some other bank. Other banks again create credit on the basis of fresh deposits received after keeping the required reserves.

Explanation:

Answer 2

Answer:

Primary deposits are those deposits that bank collects from different surplus stakeholders in the economy by different accounts. These consist of cash deposited by the people with the banks in different deposit account such as savings deposits, time or fixed deposits, current or demand deposits & other deposits.

Explanation:

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