One of the most serious management problems encountered by financial intermediaries today is disintermediation - the loss of funds from a financial intermediary to direct or semidirect finance.

Question

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Disintermediation occurs when depositors or investors withdraw their funds from intermediaries, like banks or mutual funds, to invest them directly, often due to better returns or lower costs elsewhere. This can pose significant challenges for financial intermediaries in managing liquidity and profitability.

One of the Most Serious Management Problems Encountered by Financial