Financial intermediation refers to a process in which a financial institution buys stocks and bonds on behalf of investors who then have a claim on that institution rather than ownership of the securities themselves.

Question

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This is an accurate definition of financial intermediation. The financial institution acts as an intermediary between the investor and the securities market, and investors have a claim on the institution's assets rather than direct ownership of the securities.

Financial Intermediation Refers to a Process in Which a Financial