question_answer

How are deposits with the banks beneficial for individual as well as for the nation? Explain with examples.

Answer:

The deposits with banks are beneficial for individual as well as for the nation as:

(i) Banks accept deposits and pay an amount as interest and in this way people earn money.

(ii) People?s money is safe with banks.

(iii) It is easy for individuals to get credit who have saving and current accounts in the banks.

(iv) Poor people who are engaged in production, crucially need credit.

(v) Credit provided by the banks for government projects helps in the development of the nation.

(vi) Banks provides loans for the promotion of done International trade.

(vii) Development of infrastructure is usually with the loans provided by the banks.