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What is the primary role of financial intermediaries?
What is the primary role of financial intermediaries?
- To regulate financial transactions on the market
- To invest in financial assets on their own account
- To channelize funds from lenders to borrowers (correct)
- To provide financial advice to lenders
What is financial intermediation?
What is financial intermediation?
- A productive activity that incurs liabilities to acquire financial assets (correct)
- A type of financial institution that provides advisory services
- A type of financial transaction that occurs only in the market
- A process of lending and borrowing directly
What is a financial establishment primarily engaged in?
What is a financial establishment primarily engaged in?
- Regulating financial transactions on the market
- Financial intermediation and auxiliary financial activities (correct)
- Providing financial advice to borrowers
- Investing in financial assets on its own account
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.
