Question

What percentile of deposits does the bank invest on economic activities and Why does the bank keep small portion of deposits to themselves

plz guys answer it
I need it quick ​

Answer 1

Answer:

I am telling your answer please wait

⭐ Answer⭐

The loan-to-deposit ratio (LDR) is used to assess a bank's liquidity by comparing a bank's total loans to its total deposits for the same period. The LDR is expressed as a percentage. If the ratio is too high, it means that the bank may not have enough liquidity to cover any unforeseen fund requirements. Conversely, if the ratio is too low, the bank.

Answer 2

Answer:

HERE IS YOUR ANSWER DEAR..

Explanation:

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

2. Banks in India these days hold 15 percent of their cash deposits as cash.

3. This is kept as provision to pay the depositors who might come to withdraw money from the bank on any given day.

4. Since on any particular day, only some of its many depositors come to withdraw cash, the bank is able to manage with this cash.