Social Sciences, asked by albinsibin2, 5 months ago

how do banks mediate between borrowers ​

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Answered by Anonymous
1

Answer:

Banks accept the deposits and also pay an interest on the deposits. ... In this way, banks mediate between those who have surplus funds (the depositors) and those who are in need of these funds (the borrowers). Banks charge a higher interest rate on loans than what they offer on deposits.

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