How do financial intermediaries reduce risk?

What will be an ideal response?

Financial intermediaries reduce risk by diversifying investors' assets. One way intermediaries do this is by investing in a large number of projects whose returns are independent of one another.

Economics

You might also like to view...

In April, market analysts predict that the price of titanium will fall in May. What happens in the titanium market in April, holding everything else constant?

A) The demand curve shifts to the right. B) The supply curve shifts to the left. C) The quantity demanded and the quantity supplied increase. D) The supply curve shifts to the right.

Economics

Federal individual income taxes illustrate the ability-to-pay principle of taxation

a. True b. False

Economics