MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Loan Activities

Can banks use...

Question

Can banks use all deposits as loans?

A

No

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

B

Yes

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A No

Suggest Corrections

thumbs-up

0

Similar questions

Q. The Reserve Bank of India ensures that banks do not lend out all their deposits as loans.

Q. Give Reason Or Explain the following statements.
Every loan creates a deposit or commercial banks can create deposits through loan.

Q. Loans offered by commercial banks are equal to deposits received by them.

Q. The interest rate on loans is higher than the interest rate that banks offer on deposits.

Q. Assertion (A): Banks give loans to cooperatives.
Reason (R): The members of the cooperatives make deposits periodically.

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Loan Activities

ECONOMICS

Watch in App

explore_more_icon

Explore more

Loan Activities

Standard X Economics

Join BYJU'S Learning Program

CrossIcon