Based on financial analysis, the role that financial intermediaries play in a free enterprise system includes making
makingprofitable markets and lowering the cost of doing business.
Other roles that financial intermediaries play in a free enterprise system include the following:
- Offer advantage of pooling risk;
- Offer reducing cost,
- Providing economies of scale, etc.
Examples of financial intermediaries include the following: banks, insurance companies, pension funds, investment banks, etc.
Hence, in this case, it is concluded that financial intermediaries are vital in the free enterprise system.
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