One reason that financial intermediaries exist is that they:

Question

Quizplus · Accepted Answer

Financial intermediaries exist because they have developed low-cost methods to obtain and process information about borrowers and investors. They use this information to assess creditworthiness, manage risk, and price financial products. This helps to create more efficient financial markets and to facilitate the flow of funds between surplus and deficit units. While government regulation may influence the types of activities that financial intermediaries engage in, it is not the primary reason for their existence. Financial intermediaries are also not the only way to obtain information, as some investors may choose to conduct their own research and analysis. Finally, while financial intermediaries may earn returns from lending and investing activities, this is not the sole reason for their existence.

One Reason That Financial Intermediaries Exist Is That They