Which of the following is the best definition of a financial intermediary? Finan
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Question
Which of the following is the best definition of a financial intermediary?
Financial intermediaries act as a go-between linking savers and borrowers by issuing their own liabilities to savers and holding the liabilities of the borrowers.
Financial intermediaries are profit-seeking institutions that make money by taking large risks.
A financial intermediary receives fees for bringing together the buyers and the sellers of securities.
Financial intermediaries are public institutions that serve the oversee and regulate the securities industry.
Financial intermediaries are institutions that make loans.
A.Financial intermediaries act as a go-between linking savers and borrowers by issuing their own liabilities to savers and holding the liabilities of the borrowers.
B.Financial intermediaries are profit-seeking institutions that make money by taking large risks.
C.A financial intermediary receives fees for bringing together the buyers and the sellers of securities.
D.Financial intermediaries are public institutions that serve the oversee and regulate the securities industry.
E.Financial intermediaries are institutions that make loans.
Explanation / Answer
Ans) A is the correct option. Financial intermediaries act as a go-between linking savers and borrowers by issuing their own liabilities to savers and holding the liabilities of the borrowers. Financial intermediaries Provide channels for funds to flow from savers to borrowers
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