suppose jake comes into a large sum of money and decides to lend it out to earn interest on it. because he lacks the expertise to evaluate the credit risks of potential borrowers, he decides to deposit the money in his local bank, a financial intermediary. this is an example of how financial intermediaries can help solve the problem of:

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25-10-2022
Business

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suppose jake comes into a large sum of money and decides to lend it out to earn interest on it. because he lacks the expertise to evaluate the credit risks of potential borrowers, he decides to deposit the money in his local bank, a financial intermediary. this is an example of how financial intermediaries can help solve the problem of:

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kumarkrishna kumarkrishna · Answer 1 · 2022-11-04T06:01:47-04:00

He decides to deposit the money in his local bank, a financial intermediary. this is an example of how financial intermediaries can help solve the problem of adverse selection.

A financial intermediaries is a company or a person who acts as a go-between for various parties in order to expedite financial transactions. Stockbrokers, investment banks, commercial banks, pooled investment funds, and stock exchanges are examples of common categories. Financial intermediaries perform financial transactions and foster a favorable environment for their clients. A deposit is the act of putting money with a specific entity, most frequently a financial institution like a bank. A deposit is a transaction in which money is transferred to a different party for safekeeping. A demand deposit is one that can be quickly withdrawn from or otherwise debited. Transaction accounts, which may be referred to as "checking" or "current" accounts depending on the nation, can be used to make payments to other people.

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