Explain the role of financial intermediation
What will be an ideal response?
Financial intermediation is the process by which financial institutions accept savings from households and lend the savings to households, businesses, and the government. It is a middleman role that brings savers and borrowers together.
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Scarcity results from the fact that
A) people's wants exceed the resources available to satisfy them. B) not all goals are desirable. C) we cannot answer the major economic questions. D) choices made in self-interest are not always in the social interest. E) the population keeps growing.
Which of the following is the term for the baseline level of unemployment that occurs year-in and year-out and is determined by how well the structures of market and government institutions in the economy lead to a matching of workers and employers in the labor market?
a. Natural b. Structural c. Cyclical d. Full