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How would an indirect transfer through a financial intermediary benefit a borrower and a saver?
Solution
A financial intermediary is an institution that facilitates the channeling of funds between lenders
and borrowers indirectly. That is, savers (lenders) give funds to an intermediary institution (such
as a bank, insurance company,etc.), and these institutions gives those funds to spenders
(borrowers). This may be in the form of loans or mortgages.
This will benefits both the spender/borrower and the saver/lender using financial intermediaries
in following ways:

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How would an indirect transfer through a financial intermediary bene.pdf

  • 1. How would an indirect transfer through a financial intermediary benefit a borrower and a saver? Solution A financial intermediary is an institution that facilitates the channeling of funds between lenders and borrowers indirectly. That is, savers (lenders) give funds to an intermediary institution (such as a bank, insurance company,etc.), and these institutions gives those funds to spenders (borrowers). This may be in the form of loans or mortgages. This will benefits both the spender/borrower and the saver/lender using financial intermediaries in following ways: