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John would like to open a business to produce a software that he thinks wouldbe well-received...

John would like to open a business to produce a software that he thinks wouldbe well-received by the market. However, the investment needed to start a business is very high and John could barely cover it on his own. The software isvery likely to be successful and generate profits, but it takes 2 years beforeprofits are generated. Explain why the existence of a financial intermediary, likea bank, makes John’s investment more likely.

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A bank is a institute which works on probability and investments are made in projects which gives maximum profits and low losses to the bank . John's business idea requires full knowledge of the market and analysis of the idea if the idea seems suitable the instructions like bank will invest in the idea with secure amount of interest on the amount given by the bank. And with assurance of returns on the investment made by bank and if the terms of profits are agreeable then it will invest in the idea most likely.

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