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:

Full Payment

The complete settlement of an amount due, leaving no balance.

Assignment

The transfer of a debtor’s property to an Official Receiver under a voluntary assignment in bankruptcy.

Amount Owing

The total sum of money that is due or payable to another party.

Not to Commit Waste

A principle obligating a party to avoid causing damage or destruction to property.