1. Two Financial Intermediaries, their Functions and Role in an Economy Companies or organizations that connect different economic agents with surplus and deficit of funds are usually known as “Financial Intermediaries”. In their true essence, financial intermediaries pays an active role as channels between those who have large reserves of money to make investments and those who are in immediate need of money. Some common financial intermediaries are insurance companies, credit unions, banks and pension funds. Let us make discussion two financial intermediaries such as commercial banks and brokerage houses.
Commercial BanksBanking institutions are financial intermediaries that collect deposits from ...
