Banks use the major portion of the deposits to extend ____.

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Banks use the major portion of the deposits to extend loans.
Those with excess money deposit it in the bank and are known as depositors. The banks keep the minor portion of these deposits in case of immediate liquidity or emergency, and the major portion is used to give out loans. Those who need money take loans from the bank and pay interest. The interest received by the depositors is less than the one paid by the borrowers, allowing these banks to earn a profit. The depositors also get extra money on top of their deposits, making everyone better off. Banks' deposits are secure, so there is no fear of theft or loss of money, relieving people from additional stress. Those with bank accounts can get credit quickly, which is further used for productive purposes, and credit is readily available to people engaged in production.

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