Answer:
A financial intermediary is an 'entity' that acts as a middleman which facilitates the transaction between two parties.
Step-by-step explanation:
- Financial Intermediaries are a type of financial entity that acts as a middleman in a transaction between two parties.
- A financial intermediary is also responsible for facilitating the transaction between the two identities.
- In simple words, it is the financial intermediaries are the intermediate who helps in bringing the two parties closer for a transaction.
- Some examples are commercial banks, investment banks, mutual funds, etc. They also provide benefits such as security and liquidity in exchange for facilitating the transaction between the two parties.