Which of the following statements is most correct?

Question

Quizplus · Accepted Answer

Option B is correct as a bank is a type of financial intermediary that accepts deposits from individuals and businesses and lends those funds to borrowers. Option A is incorrect as all banks are financial intermediaries, but not all financial intermediaries are banks. Option C is incorrect as insurance companies are also a type of financial intermediary, but not all financial intermediaries are insurance companies. Option D is partially correct as financial intermediaries play a role in both direct and indirect finance, but it is not essential exclusively to direct finance.

Which of the Following Statements Is Most Correct