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What is financial intermediary? Name at least one financial intermediary and describe how they operate.

What is financial intermediary? Name at least one financial intermediary and describe how they operate.

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Answer #1

The financial intermediary is an institution acts as an middleman between two parties in a financial transaction.

Banks are an example of a financial intermediary

A bank is an institution that works as a middleman between a saver who deposit money in a bank and a borrower who take loan advances from the bank. All the funds which are deposited are loaned out. That is banks connect borrowers and lenders

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