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 invest in various business ventures.
E)individuals who manage their client's investment portfolios.

Question

Quizplus · Accepted Answer

Financial intermediaries are institutions that accept deposits from savers and lend these funds to borrowers, effectively channeling funds from those who have excess capital to those who need it. Examples of financial intermediaries include banks, credit unions, and insurance companies.

Financial Intermediaries Are Best Described As