The process by which financial institutions accept savings from businesses, households and governments and lend the savings to other businesses, households and governments is

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Financial intermediation is the process by which financial institutions such as banks, credit unions, and insurance companies accept deposits or savings from businesses, households, and governments, and then lend those savings to other businesses, households, and governments. This process helps to channel funds from those with surplus money to those who need it for investments or consumption. Asymmetric information, adverse selection, and moral hazard are other concepts related to but not synonymous with financial intermediation.

The Process by Which Financial Institutions Accept Savings from Businesses