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How Do Financial Intermediaries Play an Important Role in the Economy

question 38

Essay

How do financial intermediaries play an important role in the economy?


Definitions:

Indirect Method

A method for preparing the cash flow statement, where net income is adjusted for non-cash transactions and changes in working capital.

Net Income

The net income of a business once all costs and taxes are subtracted from its total revenue.

Trading Purposes

Activities conducted with the objective of profiting from short-term fluctuations in market prices.

Investing Activities

Transactions and events related to the acquisition and disposal of long-term assets and other investments, reflected in a company's cash flow statement.

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