Financial intermediaries change the mix of output by transferring financial capital from savers to dissavers (borrowers).

Question

Quizplus · Accepted Answer

Financial intermediaries facilitate the transfer of financial capital from savers to dissavers, which ultimately affects the mix of output. Savers supply financial capital to intermediaries, who then allocate it to borrowers in the form of loans or investments, thereby changing the mix of output.

Financial Intermediaries Change the Mix of Output by Transferring Financial