i. Financial Intermediation:
Financial intermediation involves financial institutions such as banks and insurance companies that mobilize funds from savers and lend them to borrowers, facilitating the flow of funds in the economy. (2 marks)

ii. Financial Disintermediation:
Financial disintermediation occurs when borrowers bypass financial intermediaries and directly access the capital markets for funding, often through the issuance of bonds or equity, thus eliminating the traditional role of intermediaries. (2 marks)