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Functions and Types of Financial Intermediaries by Adham M. Helal Nessiem is a document available to read on EtoBox.
Financial intermediaries serve three main functions: 1) reducing transaction costs between savers and borrowers; 2) reducing risk through diversification and risk sharing; and 3) addressing problems of asymmetric information like adverse selection and moral hazard. Financial intermediaries in the US can be classified into depository institutions like commercial banks, contractual saving institutions like insurance companies, and investment intermediaries like mutual funds. Similarly, Egypt
- Author
- Adham M. Helal Nessiem
- Language
- EN