Question

Loan activities of Banks in India.?​

Answer 1

Answer:

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the bank acts as a mediator between those who have surplus money and who need it.

bank often create credit on the basis of their primary deposits. So the banks mediate between the depositors and the borrowers. You might be aware of the fact that Bank give interest to the depositors and charges interest from the borrowers.

the lending rate is always higher than the deposit rates. The difference between what is charged from borrowers and what is paid to depositors is the main source of the income of the banks.

Answer 2

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Refer the attachment.