Share
Explore BrainMass

Financial Institutions.

Different financial institutions offer a variety of similar services, but with different levels of competence. What are some explanations for this?

What are major types of financial intermediaries? How are they similar and different?

Solution Preview

Different financial institutions offer a variety of similar services, but with different levels of competence. What are some explanations for this?:

Direct funds transfers are more common among individuals and small businesses, and in economies where financial markets and institutions are less developed. While businesses in more developed economies do occasionally rely on direct transfers, they generally find it more efficient to enlist the services of one or more financial institutions when it comes time to raise capital.

In the United States and other developed nations, a set of highly efficient financial intermediaries has evolved. Their original roles were generally quite specific, but many of them have diversified to the ...

Solution Summary

This solution explains why different financial institutions offer a variety of similar services, but with different levels of competence. It also explains in great detail the major types of financial intermediaries and how they are similar and different from each other.

$2.19