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Which banking function converts idle money into productive investment?

medium Q6 of 15
Banking Awareness - Basics Of Banking & Banking Terminology
Which banking function converts idle money into productive investment?
AProviding locker facility
BLending loans
CIssuing drafts
DActing as custodian
Step-by-Step Solution

  1. Step 1: Identify productive use

    Idle money becomes productive when used for business or growth.

  2. Step 2: Match with banking role

    Banks lend collected deposits to productive sectors.

  3. Final Answer:

    Lending loans → Option B

  4. Quick Check:

    Loans turn savings into investment ✅
Quick Trick: Savings → loans → investment.
Common Mistakes:
  • Confusing remittance with investment.
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