Which of these is NOT a primary role of financial intermediaries in the market for funds?
A) collecting taxes on financial transactions
B) reducing transaction costs
C) spreading risk
D) reducing information costs

Question

Quizplus · Accepted Answer

Collecting taxes on financial transactions is not a primary role of financial intermediaries in the market for funds. The primary roles are reducing transaction costs, spreading risk, and reducing information costs. Financial intermediaries facilitate the flow of funds between savers and borrowers by providing services such as pooling funds from many investors, conducting credit analysis, and providing liquidity to investors.

Which of These Is NOT a Primary Role of Financial