One of the reasons that financial intermediaries exist is that
A)it is illegal for net lenders to lend directly to net borrowers
B)the vaults at financial intermediaries are safer for your money than your mattress or piggy bank.
C)there is no system for net lenders to lend directly to net borrowers
D)financial intermediaries are better equipped to assess risk and to diversify portfolios.

Question

Quizplus · Accepted Answer

Financial intermediaries, such as banks, are able to assess risk more effectively and diversify their portfolios, providing greater security for lenders and borrowers. This is one of the key reasons why financial intermediaries exist.

One of the Reasons That Financial Intermediaries Exist Is That