In the lending/borrowing process,a financial intermediary function is to bear the risk that the borrower will not repay.

Question

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Financial intermediaries, such as banks, assume the risk of lending money to borrowers by using their own capital to fund loans. This risk is mitigated through various means, such as assessing creditworthiness and requiring collateral. Ultimately, the intermediary is responsible for ensuring that the funds they lend out are repaid.

In the Lending/borrowing Process,a Financial Intermediary Function Is to Bear