An institution that raises capital by issuing liabilities against itself is a

Question

Quizplus · Accepted Answer

A financial intermediary raises capital by issuing liabilities against itself and then uses those funds to invest in other assets, such as loans or securities. Examples of financial intermediaries include banks, insurance companies, and investment funds. Financial brokers facilitate transactions between buyers and sellers and financial agents act on behalf of clients in executing transactions, but they do not typically issue liabilities against themselves to raise capital.

An Institution That Raises Capital by Issuing Liabilities Against Itself