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Deposits whic...

Question

Deposits which arise from granting loans are called ______.

A

primary deposits

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B

derivative deposits

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C

created deposits

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D

fixed deposits

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Solution

The correct option is D derivative deposits
Banks loan out the deposits made by their investors to loan seekers. The money received in form of loan eventually gets deposited in a bank. Hence, in this case, the second deposit is referred to as Derivative deposit.

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