Question

Banks ensure optimum utilization of savings.

• A. True
• B. False

Answer 1

The correct option is A True

True.

The commercial banks accepts deposit from people and offers loan for the purpose of consumption or investment. In this process of taking deposits and lending funds from these deposits, they utilize these savings in the most efficient manner by transferring funds from people who have abundant of money to people who are in urgent need of money. Therefore, banks ensure optimum utilization of resources.