An area of finance that involves the study of organizations or 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 in physical assets (inventories, buildings, and equipment) is called:
A) financial management
B) investments
C) financial institutions
D) banks

Question

Quizplus · Accepted Answer

Financial institutions refer to organizations that facilitate the transfer of funds from savers to borrowers or investors, such as banks, insurance companies, mutual funds, and investment banks. This area of finance is important for ensuring the smooth functioning of the overall financial system and enabling economic growth and development. Financial management focuses more on the management of a company's finances, while investments focus on the selection of specific assets to invest in. Banks are a type of financial institution, but C is a broader answer that encompasses other types of intermediaries as well.

An Area of Finance That Involves the Study of Organizations