--%>

Reason of Financial Intermediation

The fundamental reason for financial intermediary’s presence is to: (1) Facilitate beginning new business firms by employing internal financing. (2) Help business organizations comply with laws needing the financial intermediation. (3) Minimize interest payments to the savers and maximize the gains of investors. (4) Decrease the transactions cost related with channeling saving to the investment.

Can someone please help me in finding out the accurate answer from the above options.

   Related Questions in Microeconomics

  • Q : Explaination of balance of payment

    explaination of balance of payment identity

  • Q : State drawbacks of barter system State

    State drawbacks of barter system: A) Both sale and purchase must take place concurrently implying double coincidence of wants. B) There is no general unit of exchange in barter system, accordingly exchange s

  • Q : Match price cuts but avoid price hikes

    A firm’s perception which competitors will match price cuts but avoid price hikes yields: (w) price leadership behavior. (x) limit pricing structures. (y) kinked demand curves. (z) monopolistic competition. Can anybody sugges

  • Q : Market adjustments due to raised

    Normal 0 false false

  • Q : Problem on Paradox of Value I have a

    I have a problem in economics on Problem on Paradox of Value. Please help me in the following question. Since diamonds are much expensive as relative to water, the: (i) Fundamental needs of people don’t comprise water. (ii) Consumer surplus from consuming the di

  • Q : Occupational Licensing The capability

    The capability of otherwise skilled workers to engage in specific careers or enter some professions is most likely most inhibited by: (1) Occupational licensing. (2) Wage discrimination. (3) Segregation in school system. (4) Signaling and screening. (5) Union labor co

  • Q : Monopsony how do you determine

    how do you determine equilibrium for nurses in a monopsony

  • Q : Perfectly price discrimination

    Babble-On holds world-extensive patents for software which translates any of 314 spoken languages within text, along with automatic audio and text translations within any of the other three-hundred-thirteen languages. This figure illustrates that Babble-On as: (1) is

  • Q : Supply curve for price elasticity of

    Suppose that all these demonstrated curves are infinitely long straight lines. So, a supply curve for that price elasticity of supply is constant for each possible price and quantity is: (i) supply curve S2. (ii) supply curve S3. (iii) supply curve S5

  • Q : Define linear consumption function

    Linear consumption function: It is a consumption function that is given on the basis of steady marginal propensity to consume. C = c + bY Here c = aut