Financial intermediaries handle a larger flow of funds than do primary markets primarily because financial intermediaries:

Question

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Financial intermediaries can lower transaction costs and increase liquidity for savers, thereby attracting a larger flow of funds than primary markets. This is because financial intermediaries pool funds from multiple savers, which allows them to take advantage of economies of scale and reduce transaction costs. Additionally, financial intermediaries offer a range of financial products that allow savers to easily diversify their portfolios and increase their liquidity.

Financial Intermediaries Handle a Larger Flow of Funds Than Do