A financial intermediary's risk-sharing activities are also referred to as asset transformation.

Name: A financial intermediary's risk-sharing activities are also referred to as asset transformation.
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Financial intermediaries like banks and insurance companies engage in risk-sharing activities by using funds obtained from savers to lend or invest in riskier assets. This process of converting low-risk liabilities (deposits) into higher-risk assets (loans or investments) is known as asset transformation.

A Financial Intermediary's Risk-Sharing Activities Are Also Referred to as Asset