By reducing transactions and information costs, financial intermediaries can offer savers higher interest rates. offer borrowers lower interest rates. earn a profit. all of these.

Answer and Explanation:

Answer = All of these.

When financial intermediaries such as state bank or the central bank or the regulatory authority of banks reduce transactions and information cost, they are able to offer higher interest rates to savers, they can lower interest rates for borrowers and can also earn profit. The financial intermediaries want the follow of money within the economy. Their purpose is to keep smooth flow within the system and this can also mean by savings. When they are able to offer savers higher interest rate or borrowers lower interest rate, they will see huge amount of money being accumulated or generated because its an incentive for people. Offering lower interest for borrowers would help in getting more borrowers. Offering higher interest for savers would mean the savers have an incentive to save money. In this way the financial intermediaries are able to earn a profit.

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answer; coefficient of correlation;