MGTA04
March 26th 2012
Chapter 10
Financial Intermediaries
Finance
World divided into two:
1) People with $$....No immediate needs and plans
2) People with needs and plans....No $$$
Financial Intermediaries
-Purpose of financial intermediaries: introduce one group to other
-People with $$ ---->> People with needs and plans
-No immediate needs and plans --->>> No $$$
Banks
Collect from:
people with money but no immediate plans (savers or depositors)
Lend to:
people with plans and ideas - but no money (borrowers)