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Loans

Can banks use...

Question

Can banks use all deposits as loans?

A

No

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B

Yes

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Solution

The correct option is A No

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Similar questions

Q. Can banks use all deposits as loans?

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.

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