A
Save at home
B
Deposit with the bank
C
Spend all money on buying goods
D
None of the above
Solution:
When people have extra cash, they usually deposit the surplus money with the bank. This is beneficial both for the individual as well as the bank. For example, if some individual deposits money with the bank, then the bank has an opportunity to grant loans to borrowers. Banks also give interest on the promise but charge a higher interest rate on loans. This is the way through which banks earn money.
