Answer:
3. facilitate the transfer of funds from savers to demanders of capital
Explanation:
Financial intermediaries refer to those organizations who act as middlemen between two parties to a financial transaction. For example, mutual funds who act as middlemen between investors and corporate.
For example, savings of the investors are pooled in by mutual funds, which are subsequently invested into various securities of corporates. This way, a mutual fund serve as a link/middleman between savers and demanders of capital.
Answer:
The answer is 3. facilitate the transfer of funds from savers to demanders of capital
Explanation:
Financial intermediaries such as banks and financial institutions take deposits from the public as savings and allocate them to the demand erst of capital such as businesses and government.
This helps the overall economy by creating a flow of cash from excess sources to shortage sources.
