What are reasons for existence of ?nancial intermediaries

Reference no: EM13897805

1. What are the reasons for the existence of ?nancial intermediaries? Why do the ultimate lenders usually not lend directly to the ultimate borrowers?

2. What are the underlying themes (or theme, if only one) of the classical paradigm? How are they represented in the different models within this paradigm?

3. Explain the various models within the classical approach and compare them. Which would you accept for your economy?

4. Explain Say's law and provide its justi?cation. Discuss its validity for a monetary economy that has commodities, money, and bonds.

Reference no: EM13897805

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