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What are financial intermediaries?

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What are the two most important financial intermediaries? List and explain.

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Solution Summary

This solution defines a financial intermediary and discusses two important types of financial intermediary institutions in 219 words.

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A financial intermediary is something that stands between borrowers and savers and the primary purpose of a financial intermediary is to hold the saver's money and loan it out to borrowers (Shea, 2011). Intermediary is something that comes in between, so the financial intermediary is something that serves as the middle man between one who saves money to be deposited and one ...

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