Question

the main services that financial institutions provide as financial intermediaries

Answer 1

Main functions of financial intermediaries are

Invest surplus money from clients and invest them in market in stock,bonds,deposits and insurance and mutual funds and other financial products.

It is duty of financial intermediaries to reduce cost of transactions and also make available credit required by clients. so if financial intermediaries are not done by financial institutions then they approach other financial institutions for credit and other facilities. so it requires charges and time also. so if financial intermediaries is financial institutions so task becomes very easy all facilities are provided by financial institutions.

Main services provided by financial institutions as financial intermediaries are

1 invest surplus funds of clients in stock,bond,mutual funds,insurance products as per need of clients.

2 providing timely credit to clients at very low cost.

3 Reducing transaction cost of clients.

4 Providing advice to clients on financial planning.

5 Provide help clients in settlement issues etc.

6 Providing margin call to clients and adjust money if needed.

7 Help clients in risk management.