Banks mediate between depositors and borrowers + principle of
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Answered by
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...
See here for your answer....
=========
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
5
banks mediate between those who have surplus funds (the depositors) and those who are in need of these funds (the borrowers).
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