Final answer:
Intermediaries in the distribution process are often involved in risk-taking activities, with banks being a prime example of financial intermediaries that lower transaction costs and facilitate efficient transactions by bringing savers and borrowers together.
Step-by-step explanation:
Intermediaries performing a transactional function in distribution are engaged in buying, selling, and risk taking. These are entities or individuals that act as a middleman in the distribution process, facilitating transactions between producers and consumers. Financial intermediaries, such as banks, play a vital role in the payment system. They help the economy exchange goods and services for money or other financial assets. They also help lower transaction costs by bringing savers and borrowers together, thus making the process of lending and borrowing more efficient and safer. Banks, in particular, accept deposits from savers and then use these pooled funds to make loans to borrowers, thereby creating money and helping to channel financial resources to healthy businesses with good prospects for growth and repayment.
An intermediary is one who stands between two other parties. In the context of distribution, intermediaries that perform a transactional function are engaged in buying, selling, and merchandising. They facilitate the exchange of products or services between producers and consumers, handling tasks such as negotiating prices, holding inventory, and promoting the products to customers.