Financial intermediation
What Financial intermediation means in Economics A-Level, as defined for AQA, Pearson Edexcel.
Definitions of Financial intermediation
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Reference: AQA
Acting as intermediaries between economic agents with surplus funds and those with a deficit, facilitating saving and lending.
Acting as a link between savers and borrowers in the economy.
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
- Commercial banks and investment banks (AQA A-Level)
- The structure of financial markets and financial (AQA A-Level)
- The financial sector (Pearson Edexcel A-Level)
Related terms
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