Which of the following is correct regarding financial intermediaries? Multiple Choice Financial intermediaries specialize in assessing...

Which of the following is correct regarding financial intermediaries? Multiple Choice

Financial intermediaries specialize in assessing the risk of optimization.

Financial intermediaries specialize in assessing the risk of default.

Financial intermediaries specialize in assessing risk of profitability.

Financial intermediaries specialize in assessing the risk of succes

Solutions

Expert Solution

Financial intermediaries specialize in assessing the risk of default.

Explanation: Financial intermediaries are the financial institutions which connect the savers with borrowers. They take deposits from savers and lend the same to borrowers. Therefore, financial intermediaries need to be able to effectively evaluate the creditworthiness of the borrowers ie.e. the default risks of the borrowers before lending money to them.

Rahul Sunny answered 1 year ago

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