USA HISTORY

Detailed explanation-1: -In short, banks don’t take the money that you deposit, turn around and loan it at a higher interest rate. But they do use the money you deposit to balance their books and meet the necessary cash reserves that make those loans possible.

Detailed explanation-2: -Banks may invest as much as 10% in the paid-up capital/unit capital in category I and II funds, but cannot invest in category III funds.

Detailed explanation-3: -More specifically, banks offer deposit accounts that are secure places for people to keep their money. Banks use the money in deposit accounts to make loans to other people or businesses. In return, the bank receives interest payments on those loans from borrowers.

Detailed explanation-4: -Key Takeaways The banking sector is a good choice for value investors. Value investors look for stocks that trade for less than their intrinsic value. The banking sector pays dividends, which demonstrates a great history and provide investors with a share in profits.