Banks act as financial intermediaries by:

Question

Quizplus · Accepted Answer

Banks act as financial intermediaries by serving the credit needs of borrowers and the security needs of savers. They take deposits from savers and lend those deposits to borrowers, facilitating the flow of money in the economy. Banks also provide other financial services such as checking and savings accounts, loans, and credit cards. A and B are incorrect because banks do not specifically bring together car buyers and auto dealers, or real estate brokers and home buyers. C is incorrect because banks do not print money, that is the role of the central bank. E is incorrect because selling shares of stock is the role of investment banks or stockbrokers, not commercial banks.

Banks Act as Financial Intermediaries By