Financial Intermediaries
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Title: Financial Intermediaries

Essay Details:

Subject: Business
Author: Steven C
Date: September 12, 2013
Level: University
Grade: B
Length: 2 / 408

Essay text:

These institutions assist the channeling of funds between lenders and borrowers. These institutions are engaged in bringing the two parties together by borrowing funds from lenders and lending them to borrowers so that both parties find the transaction more favorable than if they traded directly with each other. Financial intermediaries are able to greatly reduce the possibility of potential risks by sharing the risks among various investors and consequently achieving a significant diversification. This diversification is due to the large number of resources that these institutions deal have at their disposal...

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