Week 3- Financial System Flashcards by Arya Wadivkar

Q

Financial intermediaries

A

Play a crucial role in facilitating the transfer of funds from savers to borrowers
- serve as intermediaries b/w savers and borrowers

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Q

A

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Q

Indirect finance

A

Facilitating funds for. Savers to borrowers through intermediaries

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Q

Types of financial intermediaries

A

banks
mutual funds
insurance companies
credit unions

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Q

Functions of financial intermediaries

A

Risk transformations
economies of scale
info analysis
maturity transformations

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Q

Importance of financial intermediaries

A

efficiency
-risk management
capital allocation
liquidity provision

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Q

Pros of financial intermediaries

A

Imorjtsnce of regulatory oversight, protecting consumers and maintaining g market integrity

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Q

A

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