Final answer:
In modern economies, financial intermediaries, particularly banks, receive money from savers and provide funds to borrowers, allowing funds to circulate and support economic activities.
Step-by-step explanation:
In modern economies, financial intermediaries such as banks play a crucial role by receiving money from savers and providing funds to borrowers. Banks act as a bridge between those with excess funds looking to earn interest payments and those in need of funds for various purposes such as personal loans, mortgages, or business investments. Savers place their money in bank accounts and earn interest, while borrowers take loans from banks and repay them with interest. This system ensures that funds are efficiently distributed throughout the economy, fostering growth and stability.