| From Radianceweekly.com: Financial systems are crucial for the efficient allocation of resources in a modern economy. The main role played by financial intermediaries are asset transformation, conduct of orderly payments, brokerage and risk transformation.
They not only channel resources from capital surplus agents (generally households) to capital deficit one (business) but also allow international smoothing of households’ consumption and business expenditure, enabling both firms and households to share risks........................Full Article: Source
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