Question

Banks mobilize the savings of the people.

• A. True
• B. False

Answer 1

The correct option is A True

A commercial bank is that financial institution which accepts deposit from people and offers loan for the purpose of consumption or investment to others. The deposits made by people into these accounts are a part of their savings which the bank use very efficiently by loaning out them for the correct purpose. Therefore, banks mobilize the savings of the people by putting them into correct use.