The main role of financial intermediaries is to:
A) borrow funds from surplus units and lend them to borrowers.
B) provide advice to consumers on their finances.
C) provide funds for the government to cover budget deficits.
D) help ensure there are enough funds in circulation in a country.

Question

Quizplus · Accepted Answer

Financial intermediaries such as banks, credit unions, and other financial institutions borrow funds from individuals or corporations with surplus funds and lend them to borrowers who need the funds for various purposes. This helps to allocate funds efficiently in the economy and facilitate economic growth.

The Main Role of Financial Intermediaries Is To