Intermediaries that help the financial system operate efficiently and transfer funds from savers and investors to individuals, businesses, and governments that seek to spend or invest the funds are known as:
A) banks
B) financial institutions
C) securities markets
D) government organizations

Question

Quizplus · Accepted Answer

Financial institutions include banks, credit unions, insurance companies, pension funds, and other intermediaries that help transfer funds from savers to investors. While banks are one type of financial institution, the broader term "financial institutions" encompasses a wider range of intermediaries. Securities markets and government organizations are separate entities within the financial system that play different roles.

Intermediaries That Help the Financial System Operate Efficiently and Transfer