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Flow of funds
The scheme shows that funds accumulated can be redistributed both with the help of markets and intermediaries. Here, financial intermediaries are defined as firms whose primary business is to provide financial services and products, while financial markets operate with such assets as debts, equity and derivatives. The interaction between intermediaries and markets always exists: intermediaries often channel funds into the financial markets, as well as obtain funds from the markets. The interaction becomes more tough as intermediaries and markets operate within one financial system, which is nowadays global...
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