“Bank plays an important role in the economic development of the country.” Support the statement with examples.
Role of Banks in the economic development of the country:
- They charge from borrowers and what is paid to depositors is their main source of income.
- Banks promote all the sectors of the economy through loans.
- There is a huge demand for loans for various economic activities.
- Banks mediate between those who have surplus funds and those who are in need of these funds.
- Banks make use of the deposits to meet the loan requirements of the people.
- They charge a higher interest rate on loans than what they offer on deposits.
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