Entities that acquire funds from savers and then lend these funds to borrowers are called
A) Federal Reserve banks.
B) Treasury banks.
C) governmental agencies.
D) financial intermediaries.

Question

Quizplus · Accepted Answer

Financial intermediaries are institutions that take funds from savers and lend them out to borrowers. Examples include commercial banks, credit unions, and investment companies. The Federal Reserve and Treasury banks are government institutions that do not operate as intermediaries, and while some governmental agencies may provide loans, it is not their primary function.

Entities That Acquire Funds from Savers and Then Lend These