Question

Name two institutions that are not important financial intermediaries in an economy

Short answer

A financial intermediaries are likely to earn some profit or interest for their services which is not aimed by cooperative societies and investment bankers.

Step-by-step solution

Step 1. Introduction

Financial intermediaries are financial institutions such investment bank, commerical banks, mutual funds, etc. that act as mediator between two parties in a financial transaction.

Step 2. Explanation

The two institutions that are not important financial intermediaries are:

1. Cooperative Society

2. Investment Banker

The cooperative societies works with the aim of helping the common man and provide them liberty from the oppressions of the economically strong people and organization.

The major aim of investment banker is to examine the financial capability of a firm by looking into the financial statement for accuracy and publishing a prospectus that describes the offerings in detail to the investor