Financial intermediaries exist primarily because
A)they are part of the U.S.Treasury.
B)they are part of the Federal Reserve System.
C)of historical accident.
D)they can make a profit.
E)of federal mandates.

Question

Quizplus · Accepted Answer

Financial intermediaries exist primarily to make a profit by connecting borrowers and savers, mitigating risks, and providing financial services that match customer needs. While they may also be subject to federal mandates, they do not exist solely for that purpose. They are not part of the U.S. Treasury or the Federal Reserve System, although they may be regulated by those entities. Historical accident may have played a role in their development, but it is not their primary reason for existence.

Financial Intermediaries Exist Primarily Because