A financial intermediary's main function is to match ________ with excess funds to ________ with shortages of funds.

Question

Quizplus · Accepted Answer

A financial intermediary's main function is to connect individuals or institutions that have excess funds with individuals or institutions that have a shortage of funds. This is achieved by borrowing funds from savers and lending to borrowers, thus acting as a middleman between the two parties. Therefore, choice A is the correct answer as it correctly matches savers with excess funds and borrowers with shortages of funds.

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