Suppose Rosa comes into a large sum of money and decides to lend it out to earn interest on it. Because she lacks the expertise to evaluate the credit risks of potential borrowers. she decides to deposit the money in her local bank, a financial intermediary. This is an example of how financial intermediaries can help solve the problem of:
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Suppose Rosa comes into a large sum of money and decides to lend it out to earn interest on it. Beca...
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