'Pooling' of funds is required because of the size-mismatch in the amount of funds supplied by surplus units and that demanded by deficit units.

Question

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Pooling of funds is required in order to match the smaller amounts of funds supplied by surplus units with the larger amounts demanded by deficit units. This helps to ensure that all parties have access to the funds they need to meet their financial objectives.

'Pooling' of Funds Is Required Because of the Size-Mismatch in the Amount