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Questions and Answers
What is the primary role of financial intermediaries?
What is the primary role of financial intermediaries?
What is financial intermediation?
What is financial intermediation?
What is a financial establishment primarily engaged in?
What is a financial establishment primarily engaged in?
What do financial intermediaries do to facilitate financial transactions?
What do financial intermediaries do to facilitate financial transactions?
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What is the outcome of financial intermediation?
What is the outcome of financial intermediation?
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Study Notes
Financial Establishment
- A financial establishment is a type of servicing establishment that primarily engages in financial intermediation or auxiliary financial activities closely related to financial intermediation.
Financial Intermediation
- Financial intermediation is a productive activity where an institutional unit incurs liabilities to acquire financial assets through market transactions.
- The primary goal of financial intermediation is to channel funds from lenders to borrowers.
Role of Financial Intermediaries
- Financial intermediaries play a crucial role in facilitating transactions between lenders and borrowers.
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Description
This quiz covers the concept of financial establishments, including their role in financial intermediation and auxiliary activities related to financial transactions.