Q. 35.0( 1 Vote )
How do banks play
Banks are the financial institutions which play an important role in the economy of our country.
1. Banks accept deposits from the general public and pay them interest on the money deposited.
2. Deposits are in turn lent as loans for the needy.
3. Loans are charged certain rate of interest on the money lent which helps the banks to improve their profits.
4. In this way, banks act as a mediator between the people who have excess money and the people who are in a need of money.
5. Loans provided by the banks help the farmers at a great level which helps in the agricultural production. This helps in the economy of the country by which surplus produce is exported to various countries.
6. Other industries are also provided cheap loans to improve their production.
Hence, banks can be termed as the root of trade and commerce in a country.
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