“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.