What do banks do with the amount deposited by the depositors?

Keep the money in the bank until the depositors withdraw

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Pay salaries to their staff

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Loan the money on interest

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Spend the money on social causes

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Solution

The correct option is C Loan the money on interest
Savings deposited in banks are not kept idle and are used to give loans to entrepreneurs. The entrepreneurs use this money as capital for their enterprises. This way, the resources become productive, and there is development in the market.

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