Q1
What do banks accept from people?
ADeposits
BOnly loans
CNothing
DOnly complaints
CBSEClass 7 (CBSE)Social ScienceCh 20 · Topic 1
The Role of Banks
Banks play an important role in the economy by accepting deposits, providing loans, and facilitating financial transactions for individuals
Core concept
Banks accept deposits from people who want to save money safely, often paying interest as a reward for keeping money in the bank.
How it works
Banks also provide loans to individuals and businesses who need money for things like buying a house, starting a business, or education, charging interest in return.
Why it matters
Banks facilitate transactions, like transferring money, paying bills, and enabling purchases through debit or credit cards, making financial activities more convenient.
Key detail
By connecting savers and borrowers, banks help ensure money flows through the economy efficiently, supporting economic growth and development.
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• Banks accept deposits and provide loans.
• Banks pay interest on deposits.
• Banks charge interest on loans.
• Loans help people buy homes, start businesses, or pay for education.
• Banks facilitate transactions like transfers and bill payments.
• Debit and credit cards are enabled by banks.
• Banks connect savers and borrowers.
• Banks support economic growth by moving money efficiently.