Channeling funds from individuals with surplus funds to those desiring funds when the saver does not purchase the borrower's security is known as

Question

Quizplus · Accepted Answer

This is a description of financial intermediation, where financial institutions such as banks gather funds from savers and lend them out to borrowers. The intermediation process plays a vital role in facilitating economic growth by channeling funds from savers to borrowers who could use these funds for their productive purposes.

Channeling Funds from Individuals with Surplus Funds to Those Desiring