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How does the possibilty of financial intermediation increase the efficiency of the financial system?
Wiki User
∙ 10y ago
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.
Wiki User
∙ 10y ago
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