Explain how banks work and also how they mediate between those who
have surplus funds and those who are in need of these funds?
Answers
Answered by
5
Banks keep only a small proportion of their deposits as cash with themselves. ... Banks make use of the deposits to meet the loan requirements of the people. In this way, banks mediate between those who have surplus funds (the depositors) and those who are in need of these funds (the borrowers).
Similar questions
Math,
6 months ago
Science,
6 months ago
English,
6 months ago
Art,
1 year ago
Social Sciences,
1 year ago