Financial intermediation is:

Question

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Financial intermediation involves the process of borrowing from savers and lending to borrowers. The intermediaries such as banks and credit unions play a critical role in providing financial services such as loans, deposits, and insurance to households and businesses. In the United States, financial intermediation is much more important than direct finance through stock and bond markets. While stock and bond markets are crucial for long-term investment and corporate finance, most households and small businesses rely on financial intermediaries for their everyday financial needs.

Financial Intermediation Is