money and credit question NCERT class 10
Answers
Answer:
what to do buddy
Explanation:
what to do,where is question
Answer:
Page No 52:
Question 3:
How do banks mediate between those who have surplus money and those who need money?
ANSWER:
A bank mediates between those who have surplus money and those who need money by allowing both to open accounts with it. Banks only keep about 15% of cash reserves to provide to people who come to withdraw money on a daily basis. 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. The difference between payment to lenders and receipt from borrowers comprises the bank’s earnings. Thus, the bank acts as a beneficiary for those with surplus money as well as those who need money.
hello
ur intro??