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

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An institution that raises capital by issuing liabilities against itself is known as a financial intermediary. Financial intermediaries are institutions that bring together lenders and borrowers or investors and investees by issuing financial claims or liabilities against themselves. Thus, they act as middlemen between savers and borrowers or investors and investees. Examples of financial intermediaries include banks, insurance companies, mutual funds, and pension funds.

An Institution That Raises Capital by Issuing Liabilities Against Itself