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Define intermediation.
The monetary system makes it possible for deficit and surplus economic units to come together exchanging funds for securities to their mutual benefit. When funds flow from excess economic units to a deficit economic unit to a financial institution the process is known as intermediation. The financial institution takes action as an intermediary between the two economic units.
What are the benefits of “paying late” (but not too late) and how do companies attempt to do this? Since money has time value, the later cash is paid, but not as well late, the b
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For what kinds of needs do you think a firm would issue securities in the money market versus the capital market?
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