Question

Bank deposits help the nation’s economy by

providing protection for consumers from theft.
giving banks the money to loan and invest.
providing protection for banks on investments.
giving consumers the ability to save money.

Answer 1

Bank deposits help the nation’s economy by giving consumers the ability to save money.

What are Bank deposits?

Money deposited into banks for safekeeping is known as a bank deposit. These deposits are placed into financial institution accounts, including checking, savings, and money market accounts.

Deposits made by customers into banks add to the total amount of savings in the economy. In order to mobilize these funds and direct them toward beneficial applications, banks are essential. Therefore, bank deposits enable consumers to conserve money, which benefits the country's economy.

Answer 2

All of the options you listed can be ways in which bank deposits help the nation's economy: Giving banks the money to loan and invest, Giving consumers the ability to save money and Providing protection for consumers from theft

Giving banks the money to loan and invest: This is the most important benefit of bank deposits. Banks use these deposits to provide loans to businesses and individuals, which fuels economic activity, creates jobs, and stimulates growth.

Giving consumers the ability to save money: This is also beneficial, as it allows individuals to build wealth and invest in their future. It also helps to stabilize the economy by providing a buffer against financial shocks.

Providing protection for consumers from theft: While not the main reason for bank deposits, holding funds in a bank account offers some protection against theft compared to keeping cash at home.