Q. What are capacitor banks in the context of electricity supply to a city?

A
They add capacitance to the supply so that electricity is stored in case of breakdown
B
These banks are storage spaces so that capacitors are available to maintenance engineers in ease of failures
C
They balance the inductive component of transformer coils to smoothen the supply
D
They balance the inductive loads to improve the power factor
Solution:

As Electrical Energy is generated and transmitted in the form of AC current and hence power factor word is always associated with AC circuit. The low power factor is undesirable because it will lead to increase in current. So in order to maintain power factor close to unity capacitor banks are used.

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