ECONOMICS
FINANCIAL MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Intermediation
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Direct lending between savers and borrowers
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Fund raising
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Wallet services
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Detailed explanation-1: -Investing in real assets is not one of the functions of financial intermediaries.
Detailed explanation-2: -It does not provide a safekeeping service for those with excess funds.
Detailed explanation-3: -Financial intermediaries serve as middlemen for financial transactions, generally between banks or funds. These intermediaries help create efficient markets and lower the cost of doing business.
Detailed explanation-4: -Investment bankers help firms issue new securities to the public, and are not financial intermediaries.
Detailed explanation-5: -What are the examples of financial intermediaries? Some of the examples are commercial banks, stock exchanges, mutual fund companies, insurance companies, credit unions, non-banking finance companies (NBFCs), pension funds, building societies, financial advisors, investment bankers, escrow companies.