Financial intermediation
What Financial intermediation means in Economics GCSE, as defined for AQA.
Definitions of Financial intermediation
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Reference: AQA
The process of channelling funds from those with surplus money (savers) to those who need it (borrowers and investing businesses).
Channelling funds from savers who have surplus money to borrowers who need it for investment or consumption.
The process by which financial institutions channel funds from savers to borrowers.
Topics that use Financial intermediation
Related terms
- Bank of England
- Building societies
- Business investment
- Central banking
- Commercial banking
- Financial institutions
- Financial sector
- Financial stability
Using Financial intermediation in the exam
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