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Explain the Various Ways That Financial Intermediaries Increase the Efficiency

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Essay

Explain the various ways that financial intermediaries increase the efficiency of an economy.


Definitions:

Changes in Equity

Adjustments in the value of a company's shareholders' equity over a period due to investments, distributions, and earnings.

Net Income

The net income of a company, which is the amount left over from revenue after deducting all costs and taxes.

Service Revenues

Income earned from providing services as opposed to selling physical goods.

Dividends

Payments made by a corporation to its shareholder members, distributing earnings.

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