LOAN ACTIVITIES OF BANKS People make deposits People make withdrawals and get interest People take loans People repay loans with interest DEPOSITORS BORROWERS . M. Salim wants to withdraw Rs , in cash for making payments. How would he write a cheque to withdraw money?
. Tick the correct answer. After the transaction between Salim and Prem, (i) Salim’s balance in his bank account increases, and Prem’s balance increases. (ii) Salim’s balance in his bank account decreases and Prem’s balance increases.
(iii) Salim’s balance in his bank account increases and Prem’s balance decreases. . Why are demand deposits considered as money? What do you think would happen if all the depositors went to ask for their money at the same time?