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In the absence of financial intermediation, individuals and businesses would struggle to efficiently allocate resources, leading to a lack of investment opportunities and economic growth. Savers would have difficulty finding suitable borrowers, while borrowers might face challenges securing funds, resulting in increased risk and uncertainty. Additionally, the absence of intermediaries would hinder risk management and liquidity provision, making it harder for participants to navigate financial markets and meet their financial needs. Overall, this could lead to a less efficient and more volatile economy.

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6mo ago

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