Which of the following is the most likely result of financial intermediaries?
A) increased funds available to borrowers
B) higher transaction costs
C) higher information costs
D) lower information cost but higher transaction costs

Question

Quizplus · Accepted Answer

Financial intermediaries bridge the gap between borrowers and lenders, pooling funds from multiple lenders and making them available to borrowers. This results in increased funds available to borrowers. While financial intermediaries may incur some information and transaction costs, the primary benefit is increased funds available to borrowers.

Which of the Following Is the Most Likely Result of Financial