Question

What would you think if people do not take loans from bank?

Answer 1

Explanation:

If people stop taking loans, the banks will stop acceptibg deposits.Now banks will have to pay salaries etc. They will start charges more money for banking servicws that they give.I think the change over will cause some unrest and losses but banks should survive.But yes there will be less employment. Recession may set in.When firms do not get loans they will produce less, they will pay less salary, so the people with less salary will buy less.