Which of the following best defines a financial institution?
A)A financial institution is an institution that only makes loans.
B)A financial institution is a firm that prints money.
C)A financial institution is a firm that helps channel funds from savers to investors.
D)A financial institution is a government agency that gives away funds to investors.

Question

Quizplus · Accepted Answer

A financial institution is typically a company that provides financial services to its clients. One of the primary functions of a financial institution is to channel funds from savers to investors, either through loans, investments or other financial products. Option A is incorrect because financial institutions offer a range of services beyond just loan making. Option B is incorrect because printing money is a function of the central bank, not financial institutions. Option D is not accurate because financial institutions are typically privately owned businesses rather than a government agency.

Which of the Following Best Defines a Financial Institution