CameraIcon
CameraIcon
SearchIcon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

Modern forms of money are closely linked to the process of banking. Explain.

Open in App
Solution

Banks are the institutions that help people deposit the excess cash they hold and draw cash when they require it in the form of demand deposits. The banks also perform several other credit functions. Banks are integral for depositing excess cash and taking loans at reasonable interest rates. The modern banking system has permitted individuals, firms, and the economy to reap the benefits of using currency and deposits.


flag
Suggest Corrections
thumbs-up
38
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Functions of the Central Bank
ECONOMICS
Watch in App
Join BYJU'S Learning Program
CrossIcon