Diploma Financial Institutions (DFI) - A large number of financial institutions serve as financial intermediaries. The essential economic function of the financial markets is to channel surplus funds from individuals who have saved from their incomes to individuals who want to finance consumption or businesses that need funds to finance capital investments. The financial market is composed of a number of financial institutions that perform a variety of functions. In most contexts, financial institutions can be considered synonymous with financial intermediaries in the financial markets. In a nutshell, financial intermediaries are the financial institutions that pool resources and channel funds from savers/lenders to spenders/borrowers.
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