Financial intermediaries differ from other businesses in that both their assets and their liabilities are mostly

Question

Quizplus · Accepted Answer

Financial intermediaries are businesses that channel funds from savers to borrowers through financial assets. The assets and liabilities of financial intermediaries are mostly financial in nature, such as loans, deposits, and securities. This distinguishes them from other businesses whose assets and liabilities may be physical or tangible in nature, such as inventories, property, or equipment.

Financial Intermediaries Differ from Other Businesses in That Both Their