Question

Introducing an intermediary into a channel may contribute to blank that are necessary to complete an exchange.

a) Reducing transactions
b) Disintermediation
c) Facilitating functions
d) Transportation and storage functions
e) Creating assortments

Answer 1

Banks as financial intermediaries help facilitate functions necessary for completing an exchange, such as reducing transaction costs and providing storage and transportation functions.

Step-by-step explanation:

An intermediary is one who stands between two other parties. In the context of business and financial markets, banks are an example of a financial intermediary that operates between savers and borrowers. By accepting deposits and making loans, banks facilitate functions such as reducing transaction costs, providing storage functions, transporting funds, and creating assortments.