Financial Intermediaries in the American Economy Since 1900 by Raymond W. Goldsmith

Title - Chapter: Types of Financial Intermediaries

TL;DR - Financial intermediaries occupy different niches and can be broken down into groups with others sharing similar qualities.

Helpfulness - 4

Tags - financial intermediaries, banks, insurance, liabilities, balance sheet

Questions answered:

  • What are financial intermediaries?
  • What is the role of different financial intermediaries?


  • Primary financial intermediaries draw funds from and make funds available to households, businesses, or government.
  • Secondary financial intermediaries rely on primary financial intermediaries for most of their funds.
  • The liabilities of the banking system are generally realizable at any time without delay.
  • Financial intermediaries under the umbrella of “insurance companies” offer protection against risks in return for definite payments by/for the insured.
    • Long-term nature; slower rate of turnover

Follow up links: