I need some assistance with these assignment. what role do financial intermediaries play in the domestic financial system Thank you in advance for the help!

I need some assistance with these assignment. what role do financial intermediaries play in the domestic financial system Thank you in advance for the help! Financial Intermediaries lead domestic financial system with an optimistic path of growth as they boost the savings Investment process and provide liquidity for important domestic sectors similar to Agriculture, real estate e.t.c. which is undoubtedly major reasons for the growth in Domestic Financial System. Financial Intermediaries diversify their investor’s money in various sectors helping in expansion of the markets resulting in generating high employment, high productivity and strength of competition. Banks as financial intermediaries provide solutions for the investors who choose to put their money at a reliable source with the low risk factor. In financial terms, Investors are recognized by the people with a surplus of money wanting it to lend for the sake of interest gain and good returns whereas the borrowers are the units which are facing a deficiency of money to expand capacity or their productivity.

Financial Intermediaries enhances the effectiveness of Domestic financial systems as they provide their investors with good returns, reduced risk of money loss, exploring new resources to bring in money hence, bringing economic stability to the monetary policies. An increasing flow of liquidity in markets create more employment, increased the productivity of industries stabilizing Economic conditions and expansion which improves the lifestyle of people and mentality to save surplus resulting in the growth rate of financial cycles

Financial Intermediaries like banks, insurance companies encourage savings habit in the people by launching attractive and worthy deposit schemes. The banking institutions play key role in maintaining the domestic finances by ensuring smooth flows of liquidity redistribution, maturity conversion, execution of fiscal policies, scheming payment channels and taking necessary initiatives as per the requirement of the national economy for growth. Financial intermediaries influence domestic financial system growth by the means system consisted of two factors.

Growth in percentage of savings turning investments.Expansion of capital distribution in market ventures.

The increasing flow of liquidity in markets create more employment, increased productivity of industries stabilizing Economic conditions and expansion which improves the lifestyle of people and mentality to save surplus resulting in a cycle of fund flowing through savings.