why do banks keep a small proportion of money with themsleves .....plz answer according to class 10
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Answer: Banks keep a small proportion of cash with themselves to pay the depositors who might come to withdraw money.....
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✦✧ANSWER✦✧
Banks keep a small potion mostly 15% of total deposits as cash with themselves which is known as Reserve. The banks keep such a small portion of money as reserve to pay the depositors who might come to withdraw money from their accounts on any day in the bank.
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