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(16 points) Asset transformation and financial intermediation 2.a (4 points) Briefly discuss how the asset transformation pro
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2.a.) Asset transformation produced by certain types of financial intermediaries make the small investors/ savers better off in a number of ways. Many a times the financial intermediaries make securities of their own or their personal securities available for small savers and after that these financial intermediaries may again use the proceeds which it may use often to expense in primary securities as well. These financial intermediaries often share or distribute their funds over a large range of loans. Not just these, it is often seen that the financial intermediaries help to decrease cost to a very great extent.

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