Explain Why Financial Intermediaries Are Necessary to Facilitate the Movement

question 34

Essay

Explain why financial intermediaries are necessary to facilitate the movement of funds from savers to investors and how they provide benefits to both groups.

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Definitions:

Quantity Demanded

Refers to the total amount of a good or service that consumers are willing to purchase at a given price level during a certain time period.

Market Price

The current price at which a good or service can be bought or sold in a marketplace.

Pesticides Cost

The economic expenses associated with the purchase and application of chemical substances used to kill or control pests that threaten agricultural production or health.

Market Supply Curve

A graphical representation showing the relationship between the price of a good and the total quantity supplied by all producers.