Question

How do banks may get between those who have surplus money and those who need money?

Answer 1

The banks use the major portion of the deposits to extend loans to those who need money, charging them slightly higher interest than what they pay to the depositors. This difference is the major source of income for banks. In this way banks mediate between those who have surplus money and those who need money

Answer 2

вαnkѕ mєdíαtє вєtwєєn thσѕє whσ hαvє ѕurpluѕ fundѕ (thє dєpσѕítσrѕ) αnd thσѕє whσ αrє ín nєєd σf fundѕ (thє вσrrσwєrѕ) вч lєndíng mσnєч tσ pєσplє whσ αrє ín nєєd. pєσplє cαn σpєn αccσuntѕ ín вαnkѕ αnd вαnkѕ mαkє uѕє σf thαt mσnєч tσ fulfíl thє lσαn rєquírєmєntѕ σf thє pєσplє. α híghєr íntєrєѕt rαtє íѕ chαrgєd fσr thє вσrrσwєr αnd thαt prσfít íѕ gívєn tσ thє dєpσѕítσr αѕ íntєrєѕt fσr σffєríng dєpσѕítѕ.