Question

how do banks mediate between those who are in need of money and those who have surplus money ​

Answer 1

Explanation:

✨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

Hope this helps you.