1. An article in the Economist magazine notes the following about peer-to- peer lending sites: "Instead of a bank intermediating between savers and borrowers, the two parties deal with each other directly" (a) What does the article mean when it describes banks as "intermediatin" between savers and borrowers? (b) What advantages and disadvantages might a peer-to-peer lending site have for savers and borrowers when compared with using a bank?

1. An article in the Economist magazine notes the following about peer-to- peer lending sites: "Instead of a bank intermediating between savers and borrowers, the two parties deal with each other directly" (a) What does the article mean when it describes banks as "intermediatin" between savers and borrowers? (b) What advantages and disadvantages might a peer-to-peer lending site have for savers and borrowers when compared with using a bank?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

1.
An article in the Economist magazine notes the following about peer-to-
peer lending sites: "Instead of a bank intermediating between savers and borrowers,
the two parties deal with each other directly"
(a) (
What does the article mean when it describes banks as "intermediatin"
between savers and borrowers?
(b)
What advantages and disadvantages might a peer-to-peer lending site
have for savers and borrowers when compared with using a bank?

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