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Virat
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Asked: 2025-11-10T04:20:16+00:00 In:

Explain the role of banks with regard to money which they accept from the public.

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Banks accept deposits from the public and keep them safe. They lend money to businesses and individuals, earning interest. Banks also provide facilities like savings accounts, loans and payment services, which help in economic growth and financial security.

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    1. Banks play a vital role in managing public money. They accept deposits safely and lend money to individuals and businesses, supporting economic growth.

      Points with explanation:

      • Safe storage of money: Protect deposits from theft and misuse.
      • Lending: Loans to farmers, businesses and households promote economic activities.
      • Interest system: Depositors earn interest; banks earn by lending, maintaining balance.
      • Financial services: Provide payment facilities, credit and savings accounts.
      • Economic growth: Mobilized funds are invested in productive sectors, creating employment and improving financial stability.
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