Question

What type of information is produced by financial intermediaries but is not made available to the public?

Answer 1

Such intermediaries are banks, financial institutions, stockbrokers, etc. playing as a connective link between two parties for facilitating finance in the market. Since there is diversification, the risk of investment becomes low.

Economic information: These intermediaries play a significant role in the economy, since they have the direct touch of market; they understand market demand of fund, savings pattern, borrowing trends, etc. and produce them to the government; these are all necessary to understand an economy and to take correct measure, like monetary or fiscal policy. They don’t provide such information to general public but provide to the government.