Question

role of bank in economic development (financial facilities for trade)
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Answer 1

Explanation:

Banks play an important role in economic development

Banks collect the savings of the individuals and lend them out to business- people and manufacturers...They also provide load to farmers or business man.

Answer 2

• The banking system plays an important role in the modern economic world. Banks collect the savings of the individuals and lend them out to business- people and manufacturers. Bank loans facilitate commerce.

The banking system plays an important role in the modern economic world. Banks collect the savings of the individuals and lend them out to business- people and manufacturers. Bank loans facilitate commerce.Manufacturers borrow from banks the money needed for the purchase of raw materials and to meet other requirements such as working capital. It is safe to keep money in banks. Interest is also earned thereby. Thus, the desire to save is stimu­lated and the volume of savings increases. The savings can be utilised to produce new capital assets.