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Question
Why are capital markets regarded as financial intermediaries’? State.
Short Answer
Solution
"Financial Intermediation" refers to the process of moving financial resources from assets in excess to assets in deficit. As a financial intermediary, capital markets are extremely important.
An organized system that facilitates the efficient and seamless transfer of funds, capital, or financial resources from investors to business owners is known as a capital market. Productive capital is created here and made accessible for use in industry.
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