Explain any three loan activities of banks in India
Money and Credit (10)Explain any three loan activities of banks in India.
Answer
Loan activities of Banks in India:
- Banks use the major portion of the deposits to extend loans.
- Banks charge a higher interest rate on loans than what it offers on deposits.
- Banks make use of the deposits to meet the loan requirements of the people.
- Banks mediate between those who have surplus funds (the depositors) and those who are in need of these funds (the borrowers).
- Exam Year: 2017
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