StudentShare solutions
Triangle menu
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Financial Intermediaries - Essay Example

Nobody downloaded yet
The most important one is security. As banks and other financial institutions playing this role have the proper expertise to handle the flow of cash and make sure that it is returned on a fixed time and date, they avoid any miscommunications and make sure that potential clients don't turn out to become criminals by not returning the loan. Therefore, by putting a saver's eggs in a safe basket, they ensure that they are not stolen. Secondly, as these financial intermediaries are properly qualified to do this particular task, they are also better able to judge to whom it is safer to lend a saver's money to. They keep an updated record of the types of customers who borrow from them and of their repayment schedules. This helps in making predictions about which type of customer is a better choice to do business of lending money.
The US Government's role is twofold in the economy. It has to look after the local and international intermediaries and as well as act as an intermediary itself. This is done by two separate governmental departments. The first is the SEC (Securities and Exchange Commission) and the second is the FDIC (Federal Deposit Insurance Corporation). ...Show more
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Financial Intermediaries Essay Example | Topics and Well Written Essays - 500 words”, n.d.)
Retrieved from https://studentshare.net/miscellaneous/278205-financial-intermediaries
(Financial Intermediaries Essay Example | Topics and Well Written Essays - 500 Words)
https://studentshare.net/miscellaneous/278205-financial-intermediaries.
“Financial Intermediaries Essay Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.net/miscellaneous/278205-financial-intermediaries.
  • Cited: 0 times

Summary

Financial intermediaries as the term suggests, are people or organizations which help in the regulation of money in return for a share for themselves. For example, if a person wants a loan, he will go to a commercial bank to take it. But from where did the bank get the money to provide this loan to the customer Obviously from another customer who deposited this money earlier at some point due to any reason…
Author : hilpertbroderic
Financial Intermediaries
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Financial Intermediaries"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Financial Intermediaries and The Euro Markets
The researcher states that the regulation of the financial global market is a problem as there are risks involved in the foreign currency. Some writers argue that most of the firms in the different parts of the world might be experiencing difficulties due to the trading activities rather than banking.
10 pages (2500 words) Essay
Financial Intermediaries
(Morawski, 2012) Nevertheless, for a progressive and thriving economy, it is imperative for the financial institution to equip them with the awareness regarding the various risks and benefits that prevails in the market. This report elaborates on the characteristics of a financial intermediary and how the consumers derive benefits from it.
6 pages (1500 words) Essay
Financial Markets and Institutions
According to Allen and Gale (2000, chap 1), Financial intermediaries can be broadly classified into: deposit taking institutions such as banks, credit unions, savings and savings societies; Insurance schemes such as life insurance policies; investment ventures such as retirement benefits schemes and mutual funds.
6 pages (1500 words) Essay
The Role That Financial Intermediaries Play
The most fundamental contribution that any financial system makes is to channel resources from individuals and companies with surplus resources to those with resource deficits. The financial system not only satisfies savings needs of the economy but also facilitates the accumulation of investment capital that is critical to growth and development.
2 pages (500 words) Essay
Why have some financial intermediaries retained a mutual structure while others have converted to investorowned companies (500words)
Laws affect the ways in which business is conducted from region to region and country to country. Negotiations are never conducted exactly as they would be where you have pursued such actions in any city, in any state in whichever country from which you originate.
2 pages (500 words) Essay
Role and Effects of Financial Intermediaries
The term financial intermediary may refer to an institution, firm or individual who performs intermediation between two or more parties in a
8 pages (2000 words) Essay
The significant role of financial intermediaries
An SSU (normally the household sector) is one where income exceeds consumption, and a DFU, consisting normally of businesses and government, is one where current expenditure exceeds current income and external sources of funds must be found to make up for or supply the difference.
8 pages (2000 words) Essay
Critically examine the future of banks as financial intermediaries
That foundation has come under fire as a result of financial crises that have come in more rapid intervals, and increased depth. Based upon conditions and circumstances, individuals as well as companies borrow funds over the long term in capital markets (Scholtens and
10 pages (2500 words) Essay
Financial Intermediaries
They are non-banking and banking institutions which transfer funds to economic agents with a deficit unit from economic agents with surplus units. Two types of financial intermediaries exist namely bank financial intermediaries, like commercial banks and central bank, and non-bank financial intermediaries.
6 pages (1250 words) Essay
Financial System and Intermediaries
Insurance companies are companies that accept premiums in exchange for covers against risks. They mainly sell insurance services. They advise clients to invest in life assurance and general insurance that act
4 pages (1000 words) Essay
Comments (0)
Click to create a comment
Let us find you another Essay on topic Financial Intermediaries for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us