Practice free →
Home › Bihar Board Class 12 (Arts) › Economics › Money and Banking › Banks can safely lend part of deposits because t…

Banks can safely lend part of deposits because they expect that

Athe RBI repays all loans
Binterest rates stay fixed
Cborrowers never default
Ddepositors rarely all withdraw
Answer & Solution
Correct answer: D. depositors rarely all withdraw
Banks can lend simply because they do not expect all depositors to withdraw their money at the same time.
Solve this in the app — Bihar Board Class 12 (Arts) practice & 24k+ MCQs →
Related questions