Question

For what purpose banks keep a small portion of the deposits as cash with themselves

Answer 1

The country that is one of the so-called BRIC economies is recognized as being one of the major emerging national economies and it is currently the 18th largest export economy in the world. The growth has helped create a negative trade balance that has widened steadily in the last fifteen years, moving from a positive trade balance of $340 million at the beginning of that period to a negative trade balance of $88.1 billion in net imports.

Answer 2

Answer:

HERE IS YOUR ANSWER DEAR..

Explanation:

. 1. Banks keep only a small proportion of their deposits as cash with themselves.

2. Banks in India these days hold 15 percent of their cash deposits as cash.

3. This is kept as provision to pay the depositors who might come to withdraw money from the bank on any given day.

4. Since on any particular day, only some of its many depositors come to withdraw cash, the bank is able to manage with this cash.