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ID number:115333
 
Evaluation:
Published: 25.04.2004.
Language: English
Level: Secondary school
Literature: n/a
References: Not used
Extract

In its broadest sense, the term "intermediary" includes any person who serves to bring other persons together. In the world of corporate finance, a financial intermediary is an institution that acts as a middleman between savers and borrowers. Specifically, these institutions accumulate money from investors and lend it to borrowers. A person with extra money could seek out borrowers alone and bypass intermediaries altogether (Schenk). By removing the middleman, the saver would most likely receive a higher return. So why then, do so many savers and borrowers use intermediaries? This pa…

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