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Deposits at banks: Have declined proportionally as a percent of total sources of funds as households...

Deposits at banks:

  1. Have declined proportionally as a percent of total sources of funds as households over the years are investing more than depositing.
  2. Can be used to purchase fixed assets for the banks.
  3. Are largest category of assets.
  4. Requires banks to maintain sufficient capital on them.
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Answer #1

Among the options available, the possible answer is option d ie, Requires banks to maintain sufficient capital on them.

all banks must have to keep an amount proportion to its deposit. i case of customers are bulkly withdrawing their deposits from the bank. this reserve is based on a percentage mentioned by the central banks of the respective countries.

while we are examining other options, option a is not true

option b is not true and option c is also not completely true.

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