Question

What are the loan activities in the banks??

Answer 1

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Answer 2

Loan Activities Of Banks :-

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

♥ In any particular day , only some of the depositors come to withdraw cash so the bank is able to manage with this cash. 

♥ Banks use the major portion of the deposits to extend loans .

♥ Banks make use of the deposits to meet the loan requirements of the people .

♥ Banks charge a higher interest rate on loans than what they offer on deposits .