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MA
Question Practice

Why can banks operate without having all deposits available at any given time?

Attempt the question, check the explanation, and continue with similar questions to build confidence before exams.

MCQ_SA
CBSE
Class 12
Economics
Introductory Macroeconomics
Money And Banking
Question Bank

Why can banks operate without ...

Single Answer MCQ
Q-00089044

Why can banks operate without having all deposits available at any given time?

1

All deposits are kept in cash.

2

Only a fraction of depositors withdraw their funds simultaneously.

3

Depositors often forget their accounts.

4

Banks rely on cash transfers from central authorities.

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