Financial intermediaries frequently offer a variety of benefits to both the borrowers attempting to raise capital in the financial markets and the economies that allow them to function. Read the following statements. Then, identify the benefits or services that may be provided by a financial intermediary. Check all that apply. Check all that apply. O Financial intermediaries tend to offer a variety of related financial services, which reduces the overall financial costs to their customers. O Since financial intermediaries separate the borrowing and the savings activities, they eliminate the need for a simultaneous desire to save and borrow between the two parties involved in either a direct transfer or an indirect transfer made via a middleman. O Financial intermediaries have the marketing staff with which to resell the borrowers' debt or equity securities to interested savers (lenders or investors). O Financial intermediaries raise the net cost of borrowing by requiring additional borrower-identification costs and reduce the return that can be earned by savers. Financial transfers of capital generally take one of three forms. In the following table, correctly identify the methods of transfer being described. Transfer Transfer through an through a Financial Direct Investment Intermediary Scenario Transfer Banking House International Imports, Inc. is a business partner of Smith Enterprises. To help its partner through a three-day budget shortfall, Smith Enterprises is willing to make a direct loan of $35,000 to International Imports, Inc. for the three days. Universal Exports, Inc. has a temporary surplus of funds to invest. To help locate a creditworthy borrower, the CFO has retained an investment broker who maintains a book of individuals and businesses seeking capital. Last week Jackson purchased a financial contract that will pay his heirs a lump-sum payment in the event of his death. This organization pools the funds deposited by a large number of policyholders. Based on your evaluation of the information in the preceding table, decide if the following statement is true or false. True or False: The existence of financial middlemen and financial intermediaries decreases the efficiency of the financial markets. True O False