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financial intermediary is one of the participants in the financial market. the other two are fund's providers and fund's users.
financial intermediaries are important because they are institution that bring lenders and borrower together. savers with excess funds will deposits funds with financial intermediaries who will then lend them to fund deficit units. examples include commercial banks, insurance companies, and investment companies. thus, financial intermediaries can be regarded both as a provider and as a user of funds.
apart from bringing fund-deficit and fund-surplus together, another function provided by financial intermediaries is investment banking. frequently, companies may need to obtain large amounts of funds direct from the public. this involve issues of securities, either in the form of debt or equity. the service of the merchant banker is required for this purpose. the banker is directly involved in floating new securities to the public besides providing advice and underwriting services. when a banker underwrites an issues, it means that any shares not bought by investors will be bought by the banker. the underwriting function ensures that the corporation receives the total amount of funds it want to raise.
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What is the most important effect that entrepreneurship has on the us economy?
Its because its huge for any economy and if more people were one the financial problem could be no more.
Why is credit an important part of the economy and how does it impact financial stability and growth?
Credit is important in the economy because it allows individuals and businesses to borrow money to make purchases or investments. This helps stimulate economic activity and growth by enabling people to buy homes, start businesses, and make other important financial decisions. However, too much reliance on credit can lead to financial instability if borrowers are unable to repay their debts, which can have negative effects on the economy. Therefore, maintaining a balance between access to credit and responsible borrowing is crucial for financial stability and growth.
Why is it important to solve macroeconomic problems in Indian economy?
Macroeconomic problems in India's economy can have an effect on all nations. When India has a large budget deficit it causes financial difficulties that effect all nations.
Structure of Indian financial systm?
Mixed Economy
Why banjaras are important for economy?
They are important for the economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . because i dont know
What is the most important effect that entrepreneurship has on the us economy?
Its because its huge for any economy and if more people were one the financial problem could be no more.
What is Nigeria's economic system?
The Nigeria financial system is an important segment of the economy that ensures a smooth flow of funds from the surplus spending unit to the deficit spending unit through process of financial intermediation.
Why is credit an important part of the economy and how does it impact financial stability and growth?
Credit is important in the economy because it allows individuals and businesses to borrow money to make purchases or investments. This helps stimulate economic activity and growth by enabling people to buy homes, start businesses, and make other important financial decisions. However, too much reliance on credit can lead to financial instability if borrowers are unable to repay their debts, which can have negative effects on the economy. Therefore, maintaining a balance between access to credit and responsible borrowing is crucial for financial stability and growth.
Why are financal markets important for the healthy of the economy?
It improves financial status of the nation. Financial markets give profits to the government.After getting profits by government they will give service to poor people.
Why is a strong economy important?
why is a strong economy important
What is the UK financial system?
The type of financial system that the UK has is called a mixed economy. The mixed economy financial system focuses more on market-based economies.
What is financial widening?
Financial Widening refers to the growth in number and size of Financial Institutions in an economy.
Why is it important to solve macroeconomic problems in Indian economy?
Macroeconomic problems in India's economy can have an effect on all nations. When India has a large budget deficit it causes financial difficulties that effect all nations.
What are the impact of financial institution on an economy?
dog
What are synonyms of economy?
budget; financial system
What is important to the economy of Georgia?
what are the important features of Georgia's economy
How does the family economy impact overall financial stability and well-being?
The family economy significantly influences financial stability and well-being by determining income levels, spending habits, and savings. A strong family economy can lead to better financial security, while a weak one may result in financial struggles and stress.
