Economy, asked by tejastej1676, 1 year ago

Banks mediate between depositors and borrowers + principle of

Answers

Answered by brainlystargirl
8
Heya....

See here for your answer....

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Depositors ---- Bank --- Borrowers

In this banks are the mediators ,, this is the basic principle of credit creation by commercial banks....

"" In this depositors deposits their surplus income with banks and enjoy intrest ..

"" Bank kept some of deposits in form if CRR with RBI to manage withdrawal of income by depositors..

"" Rest money is used up by banks to further loans generations...

-- Be Brainly...
Answered by Anonymous
5
banks mediate between those who have surplus funds (the depositors) and those who are in need of these funds (the borrowers). 

hope \: helps
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