Without financial intermediaries, the cost of funds would be about the same as with financial intermediaries.
Intermediaries expedite the flow of funds efficiently, thereby reducing the cost of these funds.

Question

Quizplus · Accepted Answer

Financial intermediaries help reduce the cost of funds by pooling resources and spreading risks, which would not be possible without their involvement. Therefore, without intermediaries, the cost of funds would likely be higher due to the lack of these efficiency gains.

Without Financial Intermediaries, the Cost of Funds Would Be About