Financial intermediaries are important because

Question

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Financial intermediaries, such as banks and mutual funds, play an important role in the economy by bringing together lenders and borrowers. They do this in a way that can lower transaction costs, making it easier for individuals and businesses to invest or borrow money. This, in turn, can promote economic growth and development. Option B, C, and D are not correct because financial intermediaries do not necessarily provide large funds to the stock market, employ large numbers of people, or increase costs for banks.

Financial Intermediaries Are Important Because