Financial intermediaries
A) exist because there are substantial information and transaction costs in the economy.
B) improve the lot of the small saver.
C) are involved in the process of indirect finance.
D) do all of the above.
E) do only A and B of the above.

Question

Quizplus · Accepted Answer

Financial intermediaries exist to reduce information and transaction costs in the economy, and they facilitate indirect finance, which benefits small savers by pooling their funds and investing in a diversified portfolio of assets.

Financial Intermediaries