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Single Answer MCQ
Q-00015849

What role do loan activities of banks play in economic development?

1

They limit consumer spending.

2

They promote savings only.

3

They aid in fund allocation for growth.

4

They create inflation.

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Sandeep Chaturvedi

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Answer and Solution

Answer

C. They aid in fund allocation for growth.

Solution:

Loan activities of banks aid in fund allocation for growth by directing resources to various productive economic activities, thus promoting overall economic development.

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