1 World of finance

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Title: 1 World of finance

Essay Details:

Subject: Business

Author: Lamont M

Date: May 5, 2016

Level: University

Grade: A

Length: 6 / 1746

Essay text:

Someone who does not specialize in this lending may be a poor judge of which loans are worth making and which are not, though even a specialist will make some mistakes. A second advantage of using a financial intermediary is they have the ability to convert assets into liquid (useable) money. Although the intermediary may use its funds to make illiquid loans, its size allows it to hold some funds idle as cash to provide liquidity to individual depositors. Financial intermediaries help large numbers of people to use financial markets with a minimal amount of risk involved. Although these intermediaries are important in the macroeconomic functioning of the economy, they are usually stable and change only slowly...

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