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Suppliers of funds Savers have the option of purchasing financial assets such as stocks and bonds directly in the marketplace or they can choose to use the services of a financial intermediary

Suppliers of funds (Savers) have the option of purchasing financial assets such as stocks and bonds directly in the marketplace - or they can choose to use the services of a financial intermediary such as a Commercial Bank.

            a.) Describe how the financial intermediary is an “asset transformer.”

      b.) Discuss the important benefits provided to the suppliers of funds by the financial intermediary.

            c.)   Discuss the major disadvantage for the suppliers of funds when using a financial intermediary?

 

Apr 22 2020 View more View Less

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