How do banks mediate between those who have surplus and those who need

1.	How do banks mediate between those who have surplus and those who need money?
Answer» 1. Taking deposits and lending money are the primary activities of banks.2. Banks chare an higher rate of interest to the lenders than what they had offered to the borrowers.3. The money between what is offered and what is lend with interest is the main criteria for the bank to earn. Refer to your Economics book Money and credit chapter . Page no 42 . Loan activities of banks

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