________ intermediation means that small investors can pool their funds with other investors to purchase high face value securities.A) LiquidityB) FinancialC) DenominationD) Share

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19-12-2022
Business

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________ intermediation means that small investors can pool their funds with other investors to purchase high face value securities.A) LiquidityB) FinancialC) DenominationD) Share

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smecloudbird18 smecloudbird18 · Answer 1 · 2022-12-21T13:05:00-05:00

B) Financial is the correct answer. Financial intermediation means that small investors can pool their funds with other investors to purchase high face value securities.

Through the financial intermediation process, money is transferred between third parties that have extra money and those who don't.

In addition to acting as an agent for other institutional units, a financial intermediary also puts itself at risk by accumulating financial assets and incurring obligations for its own account (for example banks, insurance corporations, investments funds).A good illustration would be a bank, which performs a variety of tasks including acting as a go-between for borrowers and lenders and gathering money for investments.

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