The Economy Today
Quiz 32: Financial Markets
Financial Intermediaries Change the Mix of Output by Transferring Financial
Financial intermediaries change the mix of output by transferring financial capital from savers to dissavers (borrowers).
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Financial intermediaries increase the probability of a risky venture being funded by concentrating the risk among a few investors.
The primary economic function of financial intermediaries is to help allocate scarce resources to desired uses.
Financial intermediaries reduce search and information costs.
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