What is the key reason why financial institutions can transform assets and encourage transfer of funds?

Question

Quizplus · Accepted Answer

Financial institutions have economies of scale, which means they can take advantage of their size and spread their costs over a larger volume of business. This enables them to transform assets and encourage transfer of funds, as they have the resources and expertise to invest in a range of financial instruments and manage risks effectively. They can also offer a variety of financial products and services to attract both savers and borrowers, and create efficient markets for buying and selling securities.

What Is the Key Reason Why Financial Institutions Can Transform