Why Is It That Financial Intermediaries Are So Important in Most

question 52

Essay

Why is it that financial intermediaries are so important in most economies?

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Definitions:

Inflation Rate

The speed at which the average cost of products and services increases, reducing the buying power.

Risk Averse

A tendency to prefer options that have fewer risks and more certain outcomes.

Net Earnings

The profit (or loss) of a business after all expenses have been deducted from revenues.

Probability

A measure of the likelihood that an event will occur, often expressed as a number between 0 and 1.