MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Loans

act as middle...

Question

act as middlemen between those who have surplus funds and those who are in need of those funds.

A

Funders

No worries! We‘ve got your back. Try BYJU‘S free classes today!

B

Loans

No worries! We‘ve got your back. Try BYJU‘S free classes today!

C

Investors

No worries! We‘ve got your back. Try BYJU‘S free classes today!

D

Banks

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Open in App

Solution

The correct option is D Banks
Banks lend deposits as loans and collect an interest for these loans. The interest amount they collect from the borrowers is more than the interest the banks pay their depositors. The difference between these interests is the profit generated by the banks.

Suggest Corrections

thumbs-up

0

Similar questions

Q. How do banks act as middlemen between those who have surplus funds and those who need funds?

Q. Identify the characteristic of a bank that makes it a middleman between those who have surplus funds and those who are in need of these funds.

Q. This market transfers the money or capital from those who have surplus money to those who are in need of investment. Which of the following does it refer to?

Q. __________ is the process by which candidates for employment are distinguished between those who are suitable and those who are not.

Q. "Business finance includes those business activities which are concerned with the acquisition and conservation of capital funds in meeting the financial needs and overall objectives of business enterprise." This definition is given by -

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Adaptive Q14

ECONOMICS

Watch in App

explore_more_icon

Explore more

Standard IX Economics

Join BYJU'S Learning Program

CrossIcon