An important function of financial intermediation is: to direct the money from lenders to borrowers. for commercial banks to use consumer CD deposits to make deposits to small businesses. to convert financial securities with one set of characteristics into securities with another set of characteristics. to direct the money from borrowers to savers. The major players in the direct financial markets are: money center banks. both investment banks and money center banks. investment banks. regional banks. Stocks that are traded in the are typically those of smaller and less well-known firms. American Stock Exchange New York Stock Exchange over-the-counter markets National Stock Exchange .