Question

What do the banks do with the deposits which they collect from the people?

Answer 1

The banks keep a small proportion of this deposits as cash. For example, most banks keep a 15% as cash. This cash is used to give the borrowers who come at any time which the bank doesn't know. And that's how they do it.

Answer 2

the banks use collected deposits from people to lend loans to others with interest rate for a fixed tenure. when the people who took loan repay the bank they add the money to the account of the person who deposited it. hope it helps please mark it as brainliest