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प्रश्न
Give reasons or explain the following statement:
Every loan creates a deposit.
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उत्तर
Commercial banks accept deposits from the general public and grants loans and advances to the borrowers such as financial institutions and producers or manufacturers. These loans are then used by the producers and manufacturers for various purposes and as the loan is not invested on the spot, they deposit the money in banks. Thus, it is said that every loan creates a deposit.
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