Question

The benefit of depositing money in a bank is that _______.

• A. it makes easy to get loan.
• B. it earns interest.
• C. it earns status.
• D. it increases country's national income.

Answer 1

Answer: (B)

it earns interest.

1. The Banks are established in a country for deposit mobilization, loans mobilization etc.,
2. Depositing money in a bank earns interest.
3. Demand deposits or savings accounts deposit usually yields lesser interest rates than fixed deposits.
4. Banks usually borrow money from RBI at lower interest rates and lend to its customer at a little higher interest.