Question

How dobanks meliate between the borrowers and depositors?

Answer 1

Banks make use of the deposits to meet the loan requirements of the people. 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.

Answer 2

Banks make use of the deposits to meet the loan requirements of the people.

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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