Q6 of 11 Page 87

If a very large number of account-holders do not wish to keep their money in the bank, how will it affect the bank’s working?

If the large number of account holders decided to not to keep their money in the bank it will highly affect the working of the bank as the bank only keep the part of the total deposits in the bank and do payment according to the demand. Sudden withdrawal by the account holders make them gather the money in rush; thus, the working of the bank will definitely face some crisis.


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4

In what ways have cheques made exchange of money more convenient?

 5

Only a part of the total deposits is kept as cash in the bank-safe. Why is this so and how does this benefit the bank?

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If many loans are written off (that is, borrowers are not required to pay back the money) how will this affect the working of the bank?

 8

People have to pay a higher interest on loan than the interest they receive on a fixed deposit for the same time-period. Why do you think this is so?