Financial intermediaries
A)include banks and other depository institutions.
B)include the New York and American Stock exchanges.
C)directly issue claims on individual borrowers to savers.
D)are owned and operated by the federal government.

Question

Quizplus · Accepted Answer

Financial intermediaries are institutions that act as middlemen between savers and borrowers by accepting funds from savers and then lending those funds to borrowers. Banks and other depository institutions, such as credit unions and savings and loans associations, are examples of financial intermediaries. The New York and American Stock exchanges are not financial intermediaries because they do not directly intermediaries between savers and borrowers. Financial intermediaries do not directly issue claims on individual borrowers to savers; instead, they pool funds from savers and lend them out to borrowers. Financial intermediaries are not owned and operated by the federal government; most financial intermediaries are privately owned and operated.

Financial Intermediaries