A financial intermediary's main function is to match ________ with excess funds to ________ with a shortage of funds.
A)savers; borrower
B)borrower; savers
C)governments; households
D)firms; insurance companies

Question

Quizplus · Accepted Answer

A financial intermediary, such as a bank or mutual fund, takes deposits from savers who have excess funds and lends those funds to borrowers who have a shortage of funds. Therefore, the correct match is savers with excess funds and borrowers with a shortage of funds.

A Financial Intermediary's Main Function Is to Match ________ with Excess