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Write note on the functions of banks based on the hints in the diagram. |
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Answer» Banks are those institutions which accept deposit . from the public and grant loans to the needy subject to conditions. Banks pay interest to deposits accepted from people, institutions and government. Banks lend out money received as deposits to people, institutions and government. Banks collect the loan amount with interest. Thus banks act as financial intermediary by collecting the loan amount with interest to give back the deposit with interest. |
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