Question

How do bank mediate between thise whi have surplus money and those who need money

Answer 1

Bank take the money from those who have surplus money andgives to the needy with some intrest and when the needy return the money and intrest bank gives some of the intrest to the person having surplus money with his deposit

Answer 2

ʙᴀɴᴋs ᴜsᴇ ᴛʜᴇ ᴍᴀᴊᴏʀ ᴘᴏʀᴛɪᴏɴ ᴏғ ᴅᴇᴘᴏsɪᴛs ᴡɪᴛʜ ᴛʜᴇᴍ ᴛᴏ ᴇxᴛᴇɴᴅ ʟᴏᴀɴs ᴛᴏ ᴘᴇᴏᴘʟᴇ ᴡʜᴏ ɴᴇᴇᴅ ᴍᴏɴᴇʏ. ... ɪɴ ᴛʜɪs ᴡᴀʏ, ʙᴀɴᴋs ᴍᴇᴅɪᴀᴛᴇ ʙᴇᴛᴡᴇᴇɴ ᴛʜᴏsᴇ ᴡʜᴏ ʜᴀᴠᴇ sᴜʀᴘʟᴜs ғᴜɴᴅs ᴀɴᴅ ᴛʜᴏsᴇ ᴡʜᴏ ᴀʀᴇ ɪɴ ɴᴇᴇᴅ ᴏғ ᴛʜᴇsᴇ ғᴜɴᴅs. ʙᴀɴᴋs ᴄʜᴀʀɢᴇ ᴀ ʜɪɢʜᴇʀ ʀᴀᴛᴇ ᴏғ ɪɴᴛᴇʀᴇsᴛ ᴏɴ ʟᴏᴀɴs ᴄᴏᴍᴘᴀʀᴇᴅ ᴛᴏ ᴡʜᴀᴛ ᴛʜᴇʏ ᴏғғᴇʀ ᴏɴ ᴅᴇᴘᴏsɪᴛs.