36 posts

Financial Intermediaries

Financial Intermediaries – What Is a Financial Intermediary?

Financial Intermediaries – Financial Intermediary Definition A financial intermediary is an entity that acts as the middleman between two parties in a financial transaction.  Intermediaries include commercial banks, investment banks, mutual funds, or pension funds. Financial intermediaries provide a middle ground between two parties in any financial transaction. For example, […]

Interest Rate Parity

Interest Rate Parity Formula – What is Interest Rate Parity?

What Is Interest Rate Parity (IRP)? Interest rate parity (IRP) is the fundamental equation that governs the relationship between interest rates and currency exchange rates. Interest rate parity (IRP) plays an essential role in foreign exchange markets. It connects interest rates with spot exchange rates and foreign exchange rates. According […]