Assume that you recently graduated with a degree in finance and have just reported to work as an investment advisor at the firm of Balik and Kiefer Inc. Your first assignment is to explain the roles financial intermediaries play in the U.S. banking system to Michelle Delatorre, a professional tennis player who has just come to the United States from Chile. Delatorre is a highly ranked tennis player who expects to invest substantial amounts of money through Balik and Kiefer. She is also very bright, and, therefore, she would like to understand in general terms what will happen to her money. Your boss has developed the following questions, which you must answer to help explain the nature of financial intermediaries and the U.S. banking system to Ms. Delatorre.
A) How have the U.S. financial intermediaries changed in recent years? What are the arguments for such changes? What changes are expected in the future?
B) How can Ms. Delatorre utilize the services provided by financial intermediaries?