MP Board · Class 10 · Social Science · Economics: Money and CreditWhat do banks do with the major portion of the deposits they collect from the public?
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Total Attempts: 3
Accuracy Rate: 33.3%
Step-by-Step Solution
Banks keep only a small proportion of their deposits as cash with themselves and use the major portion of deposits to extend loans.
Detailed Options Breakdown
Option : Keep all cash in lockers
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Economics: Money and Credit.
Option 1: Extend loans (Correct Answer)
Correct choice. Refer to the step-by-step verified solution guidelines above for details.
Option 2: Distribute among employees
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Economics: Money and Credit.
Option 3: Send back to the government
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Economics: Money and Credit.
💡 Study Guide: This question tests core syllabus concepts from Economics: Money and Credit. For formulas, key summaries, and mock exam reference guides, read the full Economics: Money and Credit Revision Notes.