Single Answer MCQ
Q-00045416
How do banks provide loans to businesses?
1
They use their own cash reserves only.
2
They offer loans based solely on credit score.
3
They utilize the deposits held from customers.
4
They rely entirely on government funding.
Answer and Solution
Answer
C. They utilize the deposits held from customers.
Solution:
Banks provide loans to businesses by utilizing the deposits they hold from customers, allowing them to support various business ventures.
Watch Video Solution