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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.
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The credit term from the supplier is 2/30, net 60. Question: Calculate the effective annual rate if the firm does not take the discount.
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what is financial management?
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