It is generally agreed that
A)the financial system would be more efficient if intermediaries were eliminated.
B)the economy benefits from the growth generated by intermediaries.
C)the addition of intermediaries adds to transactions costs.
D)intermediaries should not seek to profit from reducing transactions costs.

Question

Quizplus · Accepted Answer

Intermediaries play an important role in facilitating economic growth by providing services such as reducing information asymmetry, pooling resources, and diversifying risk. Without intermediaries, transactions would be more difficult and costly, slowing down economic activity. Therefore, the growth generated by intermediaries is beneficial for the economy.

It Is Generally Agreed That