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Questo esame si sostiene in inglese: le lezioni e le domande sono in inglese. L'interfaccia resta in italiano.
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Part 1 of 4
A financial intermediary stands between savers (who have surplus funds) and borrowers or investors (who need funds). It earns a spread or fee for performing this matching role and for bearing risks on behalf of its clients.
Key types: - Banks: accept deposits and make loans. The interest rate on loans exceeds the rate on deposits — the spread is the bank's gross income. - Insurance companies: collect premiums, pool policyholder risk, and invest float in long-dated assets. Policyholders get protection; the insurer earns investment returns on premiums held until claims arise. - Pension funds: pool retirement savings from employees and invest them in equities, bonds, and property over decades, aiming to generate returns that meet future pension obligations. - Mutual funds: pool retail investor money to buy a diversified portfolio. Investors own proportional shares of the fund. Professional management + diversification for amounts too small to achieve it individually.
Worked example
A saver deposits €10,000 in a bank at 2% interest. The bank lends that same €10,000 to a homebuyer at 5%. The bank's net interest spread = 3% — its gross income from intermediating between saver and borrower. The saver never meets the borrower; the bank bears the credit risk that the borrower might default.
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Why is this the correct answer?
Eliminate any option that contradicts something stated directly in the lesson, then check which one actually follows from the rule you just learned. Tell me which option confused you and I'll point to the exact line.
Exam strategy
Central bank tools (reserve ratio, discount rate, open-market ops) affect money supply and interest rates in opposite directions.
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