Sunday, April 19, 2009

financial intermediaries in the financial system

the financial system also channels funds from savers to borrowers indirectly through intermediaries. These are institutions that facilitate financial trade by rising funds from savers and investing in the debt or equity claims of borrowers. This indirect from finance is known as financial intermediation . Like financial market , financial intermediaries have two tasks : matching savers and borrowers, and providing risk-sharing, liquidity, and information services.

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