Question

17)

Banks and other financial institutions use savings deposits to help borrowers by
using deposits to make loans.
x
В)
keeping deposits to earn interest.
saving deposits in a secure vault.
D)
spending deposits to improve the bank's safety.
21)

Answer 1

Banks and other financial institutions use savings deposits to help borrowers by using deposits to make loans.

Answer: Option A

Step-by-step explanation:

• The two important functions of a bank are to lend loans and accept deposits. Bank accepts deposits from people for which interest is provided to them.
• With loans being one the core functions of a bank, these loans are given to borrowers through the deposits made by the people.
• This is done to ensure that the cycle of cash and money is maintained in the economy. Based on the need and requirements, the cycle is accelerated or slowed down.