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FINANCIAL INTERMEDIARY: An intermediary matches up buyers and sellers in a market, is a go-between producers and consumers. A financial intermediary is one that matches up buyers and sellers in financial markets that trade legal claims such as stocks and bonds. Banks are among the most important financial intermediaries in the economy. Others include insurance companies, stock brokers, and mutual fund companies.

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MARGINAL BENEFIT OF SEARCH

The incremental benefit generated by additional search effort is the marginal benefit of search. Marginal benefit of search, also termed marginal search benefit, is comparable to marginal revenue of short-run production analysis and marginal utility of consumer demand theory. Marginal benefit of search decreases with an increase in search effort and is represented by the marginal benefit of search curve. This is one half of the efficient information search decision. The other is marginal cost of search.

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Today, you are likely to spend a great deal of time surfing the Internet looking to buy either a wall poster commemorating the 2000 Presidential election or a rechargeable flashlight. Be on the lookout for fairy dust that tastes like salt.
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A lump of pure gold the size of a matchbox can be flattened into a sheet the size of a tennis court!
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