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Explain the following intermediation functions indicating why banks are better placed to perform these functions: Size intermediation, Maturity intermediation, Risk intermediation, Information intermediation, and Diversification

Explain the following intermediation functions indicating why banks are better placed to perform these functions:

  • Size intermediation,
  • Maturity intermediation,
  • Risk intermediation,
  • Information intermediation, and
  • Diversification

[15 marks]

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