Scenario 4-1
In a given year, country A exported $12 million worth of goods to country B and $6 million worth of goods to country C; country B exported $4 million worth of goods to country A and $7 million worth of goods to country C; and country C exported $5 million worth of goods to country A and $2 million worth of goods to country B.
-Financial intermediaries are best described as:
A)informal institutions that provide funds to the government to manage budget deficits.
B)institutions that accept deposits and make loans.
C)institutions that control the money supply in the economy.
D)institutions that provide financial aid to foreign countries.
E)individuals who manage other's investment portfolios.

Question

Quizplus · Accepted Answer

Financial intermediaries are institutions that accept deposits and make loans. They include banks, credit unions, and other financial institutions. They play a critical role in moving funds from savers to borrowers and help to allocate capital efficiently in the economy. The scenario does not provide any information to suggest that financial intermediaries are involved in providing funds to the government, controlling the money supply, providing financial aid to foreign countries, or managing investment portfolios for individuals.

Scenario 4-1 In a Given Year, Country a Exported $12 Million Worth