Question

The Government of India has recently launched 'Jan-Dhan-Yojna' aimed at every household in the country to have at least one bank account. From the following, choose the correct answer to how deposits made under the plan will affect the country's national income.

[0.80 marks]

• A. It will lead to an increase in customers of commercial banks.
• B. It increases the lending capacity of the commercial banks.
• C. More lending by banks means more investment in the economy.
• D. All of the above.

Answer 1

The correct option is D All of the above.

‘Jan-Dhan-Yojna’ will lead to an increase in customers of commercial banks and opening of more bank accounts. It will result in more bank deposits. More lending by banks means more investment in the economy, and more investment means more national income.