Title: Show how a financial intermediary can solve problems that ultimate savers and borrowers cannot easily solve when dealing directly with each other
|Date:||February 4, 2011|
|Length:||8 / 2278|
|No of views:||0|
|Essay rating:||good 0, average 0, bad 0 (total score: 0)|
However, the direct method is an expensive and inefficient method of lending as it gives rise to many problems relating to information costs, administration costs, portfolio preferences, risk, lender of last resort and contracts and enforcement. Problems associated with the direct route and the ways in which intermediaries can solve these problems will be identified:
Savers and borrowers have to find each other, obtain information about each other, meet each other and negotiate a contract...
Showed first 250 characters
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Problems associated with the direct route and the ways in which intermediaries can solve these problems will be identified:
Savers and borrowers have to find each other, obtain information about each other, meet each other and negotiate a contract. If dealing directly with each other, the individuals concerned would have to incur these costs...
Showed next 250 characters
Total price: $10.00
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