Question

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

Answer 1

Answer:

banks play a role of mediator between people who have money and people who dont have.

Explanation:

1. People who has money keeps there in the bank in the name of savings where in the bank also pays some amount of interest to it only when non of the money kept in bank is used by the person.
2. The money which in kept in the bank is used by the banks to give loans to people who are in need of money.
3. The bank here gives loan to people with some interest .
4. But the interest which people pay is always more than what banks give us for our saving
5. Through this banks mediate between the people and also makes its profit.

Answer 2

Answer: Banks accept deposits from who have surplus money,paying them interest on this deposits.banks use 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.

The difference is the major source of income for the banks. In this way banks meditate between those who have surplus money and those who need money....

Explanation: hope this will help u.....