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The existence of financial middlemen and financial intermediaries increases the efficiency of the financial markets.
A. True
B. False

Sagot :

Tundexi

It is a false statement that the existence of financial middlemen and financial intermediaries increases the efficiency of the financial market

Who are financial intermediaries?

This refers to those entities that acts as the middleman between two parties in a financial transaction such as a commercial bank, investment bank, mutual fund, or pension fund. They offer a number of benefits to the average consumer such as safety, liquidity, and economies of scale involved in banking and asset management.

However, It is a false statement that the existence of financial middlemen and financial intermediaries increases the efficiency of the financial market because only the buyers and seller influence an efficiency of the financial market.

Read more about financial intermediaries

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