Financial intermediaries exist because small investors cannot efficiently ________.

Question

Quizplus · Accepted Answer

Financial intermediaries serve as intermediaries between parties that need to invest and parties that need to borrow, and they exist because small investors cannot efficiently diversify their portfolios, gather information, and monitor their portfolios. Therefore, all of the answers provide the reasons why financial intermediaries exist.

Financial Intermediaries Exist Because Small Investors Cannot Efficiently ________