Final answer:
Brokerage services provided by financial institutions reduce transaction costs and facilitate the bringing together of savers and borrowers, which promotes a higher rate of individual savings.
Step-by-step explanation:
The function of a Financial Institution (FI) that reduces transaction and information costs between a corporation and an individual, thereby encouraging a higher rate of savings, is Brokerage services. These services assist in lowering the costs associated with finding a lender or a borrower for money, which includes the efforts and time needed for such processes. By providing brokerage services, banks act as financial intermediaries that bring savers and borrowers together, making transactions safer, easier and more efficient, which encourages individuals to save money with the institution instead of seeking out individual lending or borrowing opportunities.