What are derived deposits ?
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Answer:
Derived Deposit : a bank deposit consisting of the proceeds of a loan credited to the depositor's account — compare primary deposit.
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Derived or derivative deposit:
A derivative deposit is a bank deposit which consists of proceeds of loan credited to account of depositor.
Explanation:
Suppose an initial deposit at a commercial bank. Since of this deposit (called a primary deposit), the bank is allotment currency. To make a profit for its depositors, the bank loans this money out. The person that gets the loan employs the money which will ultimately be deposited in a bank. This second deposit is mentioned to as a derivative deposit or secondary deposit.
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