When your rich uncle lends you $10,000 this is known as direct financing. There is no go between you and your uncle. There is only the amount that is limited and a gentlemen's agreement to repay.It would not be out of the question for uncle to ask for a small amount of interest as the purchasing power of the dollar declines over time and for all intents and purposes your uncle will have less money once you pay him back despite the fact that the...more
When you are paying a mortgage on a new home, you might find yourself in trouble sometimes. The reasons can vary, but in this economy, more and more people are having trouble keeping up with the basic payments that make up a regular life. The truth of the matter is that when you are behind even a little bit, the bills and expenses can really pile up, then you are buried in debt before you know it. At times like this, it can be tempting to do...more
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Many types of financial intermediaries coexist in our current economy. Though different, financial intermediaries have all one function in common.That is, they purchase financial claims with one set of characteristics from borrowers and sell...more
A financial intermediary is vital for a complex financial system. Lubrication is the buzzword for any economy in the sense that liquidity is closely related to how easily currency can be transferred from one party to another.Whether purchasing assets...more
There are many benefits that occur both directly and indirectly due to the role that financial intermediaries play in a complex economic system such as that of the first world nations that make up best forex trading markets.Financial intermediaries...more
The role of the financial system, that is financial institutions and markets, is to facilitate the flow and efficient allocation of funds throughout the economy and help create best forex trading markets.The greater is the flow of funds, the greater...more
If a financial intermediary is involved in the flow of funds from a lender to a borrower then this would be known as indirect financing. Financial intermediaries transform financial claims in ways that make them more attractive to the ultimate...more
This system is actually a bargain if you are one of those people who are not quite familiar with the internal stuff.Obviously this does not mean that you would not be able to spot a good computer from its specifications and the key specifications of...more