Financial intermediaries are institutions that act as middlemen between savers and borrowers. They help channel funds from individuals or entities with surplus money to those in need of funds, such as businesses or consumers. Common examples of financial intermediaries include banks, credit unions, and insurance companies. These intermediaries play a crucial role in the economy by facilitating transactions, providing liquidity, and managing risks. They assess the creditworthiness of borrowers, which helps reduce the risk for savers. By pooling resources, financial intermediaries can also offer better interest rates and investment opportunities to their clients.