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Financial intermediation is a way of indirect finance. Some lenders prefer lend indirectly via financial intermediaries by using financial instruments. Indirect finance is as important as direct finance for the financial system to survive. Thus, financial intermediation is an asset for an efficient financial system.
By the use of financial intermediaries it will be possible to provide a number of key benefits.Maturity Transformation - Deposits are mostly short term but loans are mostly long term. This mismatch can be overcome using financial intermediation.Risk Transformation - Depositors are reluctant to give their money to borrowers due to risk of fraud. intermediaries have the experience and the credit management skills to over come this problem.Aggregation - Deposits are mostly in small amounts but loans are in large amounts this mismatch can be overcome by intermediation.Geographical location - Lenders may not be able to locate the borrowers even within the same geographical area this mismatch can be overcome by using intermediation.
Describe the four approaches to using financial ratios?
implement the financial plan
AnswerExample sentences using the word financial:The business had to close due to a financial crisis.Our financial advisers will do their best to keep you satisfiedAnswerShareholders are set for a large financial gain once the takeover of the company is approved.
no
Financial intermediation is a way of indirect finance. Some lenders prefer lend indirectly via financial intermediaries by using financial instruments. Indirect finance is as important as direct finance for the financial system to survive. Thus, financial intermediation is an asset for an efficient financial system.
What are the pros and cons of using a market intermediary?
By the use of financial intermediaries it will be possible to provide a number of key benefits.Maturity Transformation - Deposits are mostly short term but loans are mostly long term. This mismatch can be overcome using financial intermediation.Risk Transformation - Depositors are reluctant to give their money to borrowers due to risk of fraud. intermediaries have the experience and the credit management skills to over come this problem.Aggregation - Deposits are mostly in small amounts but loans are in large amounts this mismatch can be overcome by intermediation.Geographical location - Lenders may not be able to locate the borrowers even within the same geographical area this mismatch can be overcome by using intermediation.
Describe the four approaches to using financial ratios?
I will consider it.
yes
implement the financial plan
AnswerExample sentences using the word financial:The business had to close due to a financial crisis.Our financial advisers will do their best to keep you satisfiedAnswerShareholders are set for a large financial gain once the takeover of the company is approved.
Financial has to do with money matters. They were concerned that using credit cards would not be good for their financial success. Couples argue about financilal matters more than anything else.
Gary A. Porter has written: 'Using financial accounting information' -- subject(s): Accounting 'Using financial accounting information' -- subject(s): Accounting 'Financial accounting' -- subject(s): Accounting
Consider using eBay.