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Question : The deposits which arise on account of loans by the banks to the people are called:

Option 1: Primary deposits

Option 2: Secondary deposits

Option 3: Cash deposits

 

Option 4: Term deposits


Team Careers360 10th Jan, 2024
Answer (1)
Team Careers360 15th Jan, 2024

Correct Answer: Secondary deposits


Solution : The correct answer is (b). Secondary deposits

Secondary deposits refer to the deposits that arise on account of loans by banks to individuals or businesses. When a bank extends a loan to a borrower, the funds provided by the bank are deposited into the borrower's account. These deposits are known as secondary deposits because they are created as a result of the loan transaction.

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