“Deposits with the banks are beneficial to the depositers as well as to the nation”

cbse
economics
money-and-credit
cbse-class-10
cbse-class-10-social

#1

“Deposits with the banks are beneficial to the depositers as well as to the nation”. Examine the statement.

Answer:
Deposits with the banks are beneficial to the depositors as well as to the nation.
Benefits to the Depositors

  • Banks accepts the deposits and pay interest to the depositor.
  • People’s money is safe with the banks.
  • People can withdraw the money as and when they require.

Benefits to the Nation

  • Banks use money of the depositor to afford loans.
  • There is a huge demand for loans for various economic activities.
  • Banks mediate between those who have surplus funds and those who are in need of these funds. Thus it helps in the economic development of the nation.