Question

“Bank plays an important role in the economic development of the country.” Support the statement with examples.

Answer 1

The bank plays an important role in the economic development of the country in many ways:

1. Banks give loans in rural areas for agricultural activities, which helps in the development of many regions.
2. Banks provide loans to create permanent assets, which in turn generate employment opportunities.
3. Banks act as a connection between people who save money and those who need funds for investment.
4. Banks accept deposits from the public and pay interest on them, which encourages people to save.
5. A large part of these deposits is used by banks to give loans to the industrial and agricultural sectors, as well as to various organisations.