Standard & Poor's sells information to investors; this is their primary business. Is this an example of a financial intermediary? Explain.
What will be an ideal response?
No. A financial intermediary is involved indirectly in a financial transaction. It matches up the ultimate lenders (savers) with the ultimate spenders (borrowers). The funds flow through the intermediary which is acting as a "middleman." That is not the case with Standard & Poor's.
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What will be an ideal response?
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What will be an ideal response?
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