Financial intermediaries include ________ that acquire the bulk of their funds by offering their liabilities to the public mostly in the form of deposits; insurance companies, pension funds, and finance companies.

Question

Quizplus · Accepted Answer

Depository institutions, such as banks and credit unions, acquire their funds by offering liabilities to the public in the form of deposits. Insurance companies, pension funds, and finance companies may also act as financial intermediaries, but they typically do not rely as heavily on deposits as depository institutions do. Therefore, option A is the best choice as it specifically mentions depository institutions as financial intermediaries that acquire the bulk of their funds through deposits.

Financial Intermediaries Include ________ That Acquire the Bulk of Their