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Single Answer MCQ
Q-00045387

How does the bank play a role in the economy regarding money?

1

By printing currency

2

By providing loans

3

By regulating trade

4

By eliminating taxes

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Sandeep Chaturvedi

Sandeep Chaturvedi

CBSE Social Science & Humanities Reviewer

Social science and humanities educator with 14+ years of experience reviewing CBSE SST, economics, commerce, arts, and vocational content.

M.A. HistoryM.A. Political ScienceB.Ed.

Answer and Solution

Answer

B. By providing loans

Solution:

Banks play a crucial role by providing loans, which help increase the money supply and facilitate economic activity by enabling individuals and businesses to spend.

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