“With fi nancial intermediation, net lenders can earn a higher return on their surplus funds, and net borrowers can acquire funds at a lower cost.” Explain how this seemingly contradictory statement...

“With fi nancial intermediation, net lenders can earn a higher return on their surplus funds, and net borrowers can acquire funds at a lower cost.” Explain how this seemingly contradictory statement can be true. (Hint: Consider a risk- free return.