What is financial intermediation process?

What is financial intermediation process?

Financial intermediation is the process of transferring sums of money from economic agents with surplus funds to economic agents that would like to utilize those funds.

What is maturity matching approach?

Maturity matching or hedging approach is a strategy of working capital financing wherein we finance short-term requirements with short-term debts and long-term requirements with long-term debts. The underlying principle is that each asset should be financed with a financial instrument having almost the same maturity.

Which one best defines financial intermediation?

The answer to this question is c) A financial institution that transforms investor funds into financial assets.

Why is maturity matching important?

The maturity matching approach has various advantages and disadvantages. The most significant advantages are that it maintains an optimum level of funds, saves interest cost, has no refinancing risk and interest rate fluctuation risk, etc. The main disadvantage is its difficulty in implementation.

What is sociology intermediaries?

By ‘social intermediaries’ I mean those institutions that mediate between the economy and other realms of social activity and maintain a balance between them.

What is the relationship between age and maturity?

Age and maturity have nothing to do with one another. A person’s life experiences are likely to help with the maturing process. As we go through difficult situations we learn to adapt and grow. Some people go through life avoiding many of these obstacles.

Does maturity begin when drama ends in a relationship?

Obviously, the woman may have more lifetime experience than her partner, still his maturity should not be deduced solely because of his age. The quote, “Maturity begins when drama ends” is a prime representation of the way in which maturity should be acknowledged.

Is experience really what defines maturity?

I see many arguments stating, ” experience is what defines maturity”, This statement is simply contradicting. Experience comes with age, A five-year-old will not have the ability to experience working at a job or paying bills. They would not be mature enough for that kind of responsibility.

Is maturity a sudden occurrence or gradual process?

Well, a lot of people have the misconception that maturity is a sudden occurrence when in reality, it’s a gradual process. Just because a person has reached the legal age, it doesn’t mean that they automatically know how to lead a company, drive a car, count taxes, or even raise a newborn child.