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Financial intermediaries provide some or all of the following six economic functions: (1) risk reduction via diversification, (2) lower costs of contracting and processing information, (3) professional portfolio management, (4) liquidity, (5) variety, and (6) a payments mechanism. Describe three of these functions, as provided by mutual funds.
Mortgage Payment
Regular payments made towards a mortgage loan, typically including both interest and principal.
Net Balance
The amount remaining in an account after all deductions are made, including potential expenses or charges.
Finance Charge
The total cost of borrowing, including interest and any other charges assessed by the creditor.
Monthly Interest Rate
The percentage of interest that is calculated and applied on a monthly basis to loans, savings, or investments.
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