A ________ is a financial intermediary that deals mainly in the flow of funds between members.Membership is generally derived from some common bond.

Question

Quizplus · Accepted Answer

Credit unions fit the description of financial intermediaries that deal mainly in the flow of funds between members. They are typically member-owned and operate on a not-for-profit basis, with membership typically based on some form of common bond such as location, employer, or profession. Savings banks and merchant banks may also deal with the flow of funds, but they are not necessarily focused on members or a common bond. Superannuation funds are a type of pension fund and do not fit the description of a financial intermediary for the flow of funds between members.

A ________ Is a Financial Intermediary That Deals Mainly in the Flow