Financial intermediary reduce costs How-00172
This subjective question is related to the book/course vu cs001 Computer Proficiency License . It can also be found in vu cs001 Mid Term Solved Past Paper No. 2.
Question 1: "Financial intermediary reduce costs". How?
Financial intermediary will reduce transaction cost because they are specializing in the issuance of standardized securities.
Answer:
Financial intermediary is naturally an foundations that make easy the control of funds between lenders and borrowers not directly that acts as the middle man between investors and firms raising fund is called financial intermediary.Financial intermediary will reduce transaction cost because they are specializing in the issuance of standardized securities.