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Which of the following are the characteristic of a financial intermediary?
1. It introduces borrowers to lenders.
2. It has assets which exceed liabilities.
3. It increases liquidity for lenders.
4. It reduces transaction costs for borrowers and lenders.
5. It makes excess profit.

Which of the following are the characteristic of a financial intermediary?
1. It introduces borrowers to lenders.
2. It has assets which exceed liabilities.
3. It increases liquidity for lenders.
4. It reduces transaction costs for borrowers and lenders.
5. It makes excess profit. Correct Answer 3 and 4

Related Questions

Consider the following pairings of Non-Performing Assets (NPA) classification in India with their descriptions: 1. Substandard assets : Assets which have remained NPAs for a period less than or equal to 12 months. 2. Doubtful assets : Assets which have remained in the substandard category for a period of 12 months. 3. Loss assets : Assets which are considered uncollectible and of such little value that their continuance as a bankable asset is not warranted, although there may be some salvage or recovery value. Which out of the above pairings are correct?
Consider the following statements.
1. In case of standard assets, provision for NPA must be 25% for all types of standard assets.
2. In case of sub-standard assets, provision for NPA must be 10% for all types of standard assets.
3. In case of doubtful assets, 100% provision is required for unsecured and secured advances.
4. In case of loss assets, 10% of unsecured and 100% of secured advance must be kept as provision for NPAs.
Which of the statement(s) given above is/are correct?
What is the role of the Credit Bureau? (A) Blacklist borrowers with bad credit record.(B) Collects credit information on borrowers and supplies the information back to lenders. (C) Gives credit assessment of borrowers. (D) Dictates credit decisions of financial institutions.
The global financial crisis in 2008 is considered to be the most serious worldwide financial crisis, which started with the sub-prime lending crisis in USA in 2007. The sub-prime lending crisis led to the banking crisis in 2008 with the collapse of Lehman Brothers in 2008. The sub-prime lending refers to the provision of loans to those borrowers who may have difficulties in repaying loans, and it arises because of excess liquidity following the East Asian crisis. Which one of the following sequences shows the correct precedence as per the given passage?
The question given below consists of a statement, followed by three arguments I, II and III. You have to decide which of the arguments is/are ‘strong’ arguments is/are ‘weak’ arguments and accordingly choose your answer from the alternatives given below each question. Statement: India's burgeoning shadow finance sector is likely to face a shake-up after defaults at one major lender battered the nation's financial markets in the past week and reinforced worries about credit risk. Industry officials and experts say they expect Indian regulators to cancel the licences of as many as 1,500 smaller non-banking finance companies because they don't have adequate capital, and to also make it more difficult for new applicants to get approval. Which of the following argument(s) stated support(s) the given fact? Arguments: I. Better capitalised and more conservatively run finance firms are likely to swallow up an increasing number of smaller rivals. That could make it difficult for many small borrowers to get loans, especially in the countryside where two-thirds of India's 1.3 billion people live and put the brakes on a surge in private consumption with a knock-on effect on growth.  II. The shadow banking sector now comprises more than 11,400 firms with a combined balance-sheet worth 22.1 trillion rupees ($304 billion) and is less strictly regulated than banks. It has been attracting new investors, particularly as the nation's banks have had to slow their lending as they seek to work through $150 billion of stressed assets.  III. Nearly 11,000 of India's NBFCs are small and medium-sized businesses with an asset base of less than 5 billion rupees. But the top 400, many of which are backed by banks and finance companies, control about 90 percent of the assets under management.
In the following passage, some of the words have been left out. Read the passage carefully and select the correct answer for the given blank out of the four alternatives.
______________________ the Troubled Asset Relief Program (TARP), the government had purchased assets of struggling banks with a view _______________ ensuring that they did not collapse taking ____________________ them the rest of the financial system. These assets __________________ later at a profit by the government! The U.S. government had acted smartly, while in the Indian case the banks now find themselves ______________________ with loans made by them to an individual with negative net worth. These assets __________________ later at a profit by the government!
The question below consists of a set of labelled sentences. Out of the four options given, select the most logical order of the sentences to form acoherent paragraph.
P: The recent reduction in interest rates in the US and the injection of liquidity have resulted in investors seeking new avenues such as commodity markets, in view
of the turbulence in financial markets and the low returns in treasuries.
Q: The relatively easy liquidity and low interest rates, by themselves, make holding of inventories attractive and thus induce volatility in commodity markets.
R: The financialisation of commodity trade and current extraordinary conditions in global financial markets could have influenced the spurt in prices.
S: The weakening of the US dollar is also advanced as a reason for the recent volatility in commodity markets, including food items.
Which of the following statements are correct in context of Statutory Liquidity Ratio (SLR)?
1. SLR consists of a certain percentage of liquid assets of NDTL.
2. Liquid assets for the purpose are those assets that one can easily convert into cash, gold, treasury bills, govt-approved securities, government bonds, and cash reserves.
3. SLR includes securities, eligible under Market Stabilization Schemes and those under the Market Borrowing Programmes.
4. The limit of SLR set is 0 to 40% of NDTL.
Assertion (A): Only the relevant costs should be taken into consideration for decision-making.
Reason (R): All variable costs are relevant costs, and all fixed costs are irrelevant costs.
The 4 costs of quality are external failure costs, internal failure costs, assurance costs and . . . . . . . . costs.