ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The interest they pay out causes the national economy to grow.
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The money they ban the government allows policemen, firemen, and soldiers to get paid.
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Without banks, the money supply would be extremely limited.
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The loans they provide keep many businesses functioning.
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Detailed explanation-1: -The banking sector is crucial to the modern economy. As the primary supplier of credit, it provides money for people to buy cars and homes and for businesses to buy equipment, expand their operations, and meet their payrolls.
Detailed explanation-2: -The banks mediate between those who have surplus money and those who need money. Banks provide cheap loans to a large number of people. They boost the industry also by providing cheap loans to industrialists. Banks are the backbone of the country’s trade.
Detailed explanation-3: -It affects the country’s economy by providing investment, credit, and infrastructure. The banking industry is the backbone of global economies. The banking sector plays a significant role in the economic growth and development of any country. The global banking sector is estimated to be over USD 20 trillion.
Detailed explanation-4: -Explanation: A commercial bank’s main functions are to receive deposits and to lend money.