How do the banks use the major portion of the deposits to extend loans – InterviewSolution

InterviewSolution

1.

How do the banks use the major portion of the deposits to extend loans?

Answer»

You need to understand the banking and BANK buy or sell money INSTEAD of the completed GOODS.

Now you have to play interested on saving deposits and other deposit the bank attract more depositor.

More depositor banks have become money which can loan to the better RETURNS.

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