Bank deposits help the nation’s economy by A. providing protection for consumers from theft.

Bank deposits help the nation’s economy by

A. providing protection for consumers from theft.

B. giving banks the money to loan and invest.

C. providing protection for banks on investments.

D. giving consumers the ability to save money.

Answer: B. giving banks the money to loan and invest.

The bank deposits come in handy for the banks since they have been used to drive the economic growth as they are the source from which the lending activities are funded. Banks, when they get money from individuals and business, have right to use portions of these deposits to give people loans be it somebody who wish to get house or firms that want capital for their expansion. Alongside, banks can use some of their deposits as an investment in financial assets that contribute to the sorting, financing and efficiency of the financial markets. Interesting, bank deposits ensure the crediting process and empower investors, which leads to the development of the flow of capital, the growth in the rate of economic goods, and ultimately the economic development of the country.