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    Juvilyn Paccarangan
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    Financial intermediaries help connect investors and savers who have surplus funds with borrowers and businesses that need funds by acting as a bridge between the two groups. They do this by gathering funds from many savers and investors and then lending or investing those funds into securities issued by borrowers and businesses that need funds. This process of financial intermediation is important for facilitating the flow of funds in an economy from those who have surplus funds to those who have a need for funds.

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    Financial intermediaries help connect investors and savers who have surplus funds with borrowers and businesses that need funds by acting as a bridge between the two groups. They do this by gathering funds from many savers and investors and then lending or investing those funds into securities issued by borrowers and businesses that need funds. This process of financial intermediation is important for facilitating the flow of funds in an economy from those who have surplus funds to those who have a need for funds.

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    3 views42 pages

    8 Financial Intermediation

    Uploaded by

    Juvilyn Paccarangan
    Financial intermediaries help connect investors and savers who have surplus funds with borrowers and businesses that need funds by acting as a bridge between the two groups. They do this by gathering funds from many savers and investors and then lending or investing those funds into securities issued by borrowers and businesses that need funds. This process of financial intermediation is important for facilitating the flow of funds in an economy from those who have surplus funds to those who have a need for funds.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    of 42

    FINANCIAL INTERMEDIATION

    Financial Intermediaries - are financial


    institutions that act as a bridge between
    investors or savers (surplus units) and
    borrowers or security issuers (deficit
    units).

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