Question

what do the banks do with the deposits which they collect from thevpublic

Answer 1

the banks take the deposits which are deposited by people and give it as loans to other people

Answer 2

# the banks keep only a small proportion of their deposits as cash with themselves. for eg. banks in India  hold 15% of their deposits as cash.

# the banks use the major portion of the deposits to extend loans.

# there is a great demand for credit for various economic activities. 

# in this way the banks meditate between borrowers and depositors.

# banks charge a interest on loan which is through the banks earns.