Question

what is the role played by bank in the economic development of a country 250 words​

Answer 1

The conditions which were viewed as obstacles to the economic exchange and growth by the new commercial classes during the nineteenth century in Europe were

1. The administrative policies introduced by Napoleon had resulted in a confederation of 39 states in place of the old principalities. Each of these had its own currency, weights and measures.

2. A merchant and a trader had to pass through several custom barriers and had to pay a custom duty of about 5% at each of these barriers. For example, in 1833, a merchant travelling from Hamburg to Nuremberg had to pay custom duty of about 5% at 11 custom barriers.

3. Duties on goods were imposed according to its weight and measurement. Because each region had its own system of weighs and measures, much time was consumed and wasted in calculating duties on the same goods which passed through several custom barriers.

Answer 2

Answer:

Banks play an important role in capital formation, which is essential for the economic development of a country. They mobilize the small savings of the people scattered over a wide area through their network of branches all over the country and make it available for productive purposes.