Economics A-Level
Financial Intermediation
What Financial Intermediation means in Economics A-Level, as defined for Pearson Edexcel.
Definition of Financial Intermediation
The process by which financial institutions bridge the gap between surplus units (savers) and deficit units (borrowers), reducing transaction costs and managing maturity transformation.
Topics that use Financial Intermediation
- The financial sector (Pearson Edexcel A-Level)
Related terms
Using Financial Intermediation in the exam
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