1. Banks make use of the deposits to meet the loan requirement of the people.

2. People deposit their funds in banks and earn an amount of interest.

3. The difference between what is charged from borrowers and what is paid to depositors is their main source of income.

4. Banks charge higher interest rates on loans than what they offer on deposits.

Options

1. 1 - 2 - 3 - 4

2. 2 - 3 - 4  - 1

3. 2 - 1 - 4 - 3

4. 4 - 3 - 2 - 1

 

Answer

So the correct answer is (c) - 2 - 1 - 4 - 3

Explanation

  • People deposit their funds in banks and earn an amount of interest . This is statement 2.
  • Banks make use of the deposits to meet the loan requirement of the people. This is statement 1.
  • Banks charge higher interest rates on loans than what they offer on deposits . This is statement 4.
  • The difference between what is charged from borrowers and what is paid to depositors is their main source of income . This is statement 3.
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Davneet Singh

Davneet Singh has done his B.Tech from Indian Institute of Technology, Kanpur. He has been teaching from the past 14 years. He provides courses for Maths, Science, Social Science, Physics, Chemistry, Computer Science at Teachoo.