What can a financial institution frequently do for a DEU
What can a financial institution frequently do for a DEU (deficit economic unit) that it would have trouble doing for itself if the DEU were to deal directly with SEU?
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SEUs want to provide amount of funds prefers it to be small, whereas DEUs aims to gain large amount of funds. So it becomes difficult for surplus and deficit economic units to together and organizes a mutually beneficial exchange of funds for securities. Financial institution helps in solving these cases. Small amounts of funds from many individuals can be taken by a bank, savings and loan, or insurance company and then use that big sum of amount to buy securities from individual businesses and governments.
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