MANAGEMENT

Detailed explanation-1: -Financial market is a link between savers and the borrowers; a financial market helps to establish a link between savers and the investors by mobilising funds between them.

Detailed explanation-2: -Banks as Financial Intermediaries Banks act as financial intermediaries because they stand between savers and borrowers. Savers place deposits with banks, and then receive interest payments and withdraw money. Borrowers receive loans from banks and repay the loans with interest.

Detailed explanation-3: -Banks act as a bridge between investors and savers, i.e. those who save but cannot use the funds themselves. They activate the idle resources of the community and bring them to productive uses.

Detailed explanation-4: -Answer and Explanation: Security markets link businesses and investors. In other words, businesses and investors are brought together in security markets where securities like shares are traded.

Detailed explanation-5: -The journey of an investor starts with savings. An investor is nothing but an evolved saver. So, if you feel you have enough money in your bank to take care of your emergencies, you’re ready to be an investor. This is because now with your emergency fund sorted, you feel comfortable stomaching more risk.