Financial intermediaries play a vital role in connecting savers and borrowers from "summary" of How Finance Works by Mihir Desai
Financial intermediaries are essential players in the world of finance. They serve as the bridge between those with excess funds to save and those in need of funds to borrow. This connection is crucial for the efficient functioning of the financial system, as it allows for the optimal allocation of resources. Savers often look for secure and productive ways to invest their money, while borrowers seek funding for various purposes, such as starting a business, buying a home, or funding a project. Financial intermediaries step in to facilitate this process by offering a range of financial products and services that cater to the needs of both savers and borrowers. One of the primary functions of financia...
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