Secondary deposits of banks r always less than primary deposits ?? True or False....
Answers
here's Ur answer.....
It is false.
Because primary sectors are mainly cash deposits.... Secondary deposits are more in number as they are made from many primary deposits
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Answer:
False
Secondary deposits arise due to loans given by the banks to people.
Explanation:
Primary deposits are simply cash deposits made in a bank by members of the general public, whereas secondary deposits are cash deposits that are made with the obligatory reserve set by the central bank in mind. Loans are made with the secondary deposits to generate credit.
Banks can produce much more credit than the initial deposit during the lending process because to secondary deposits (primary deposit). How? (Secondary deposits result from loans that banks offer to individuals; primary deposits are cash deposits.) financial multiplier All types of bank accounts can receive primary deposits, but only secondary deposits, with the exception of fixed deposit accounts.