Financial Intermediaries


Financial Intermediaries                     
Borrowers←   Financial Intermediaries    →Lenders

Financial Intermediaries transforms direct claims into indirect claims.

Savers←         Financial Intermediaries    →Investors
Savers deposits funds with financial intermediaries, and in turn, financial intermediaries lending these deposits to the ultimate investors.
Financial Intermediaries purchase securities and, in turn, issue their own securities to the public.
Financial Intermediaries consists of


A)    Commercial Banks
B)    Savings Institutions
C)    Insurance Companies
D)   Pension Funds
E)     Finance Companies
F)     Mutual Funds

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