Banks keep a major portion of the deposit to:

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Earn income

Collect money

Handle accounts

Extended loans

answer is D.

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Detailed Solution

Banks keep a major portion of the deposit for extended loans.
Commercial banks keep a major portion of their deposits to extend loans. Commercial banks perform two basic functions. They act as lenders to those who want to deposit their excess cash and provide interest on the same and as a lender to those who want to take a loan from the banks for a specified time. Banks make it mandatory for everyone to have good creditworthiness and keep the property as collateral. The amount of loan which can be raised from a deposit is decided by the credit creation process. It works with the assumption that all the depositors will not withdraw the entire amount simultaneously.

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