money and credit
how do banks mediate between those who have surplus money and those who need money ?
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Explanation:
If a person has alot of money and he deposits it in the bank, that money is given to the person who us in need of it as a loan the interest which they pay in that some amount is given as a interest to the deporsitors
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A bank mediates between those who have surplus money and those who need money by allowing both to open accounts with it. ... Those with surplus money are encouraged to invest with the bank and are paid a certain rate of interest for the same. Those who need loans are required to pay an interest on their loans.
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