Social Sciences, asked by ayush4658, 1 year ago

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 AdamRaes
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).

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