The main role of financial intermediaries is to
A)provide funds to the federal government to cover the budget deficit.
B)borrow funds from savers and lend them to borrowers.
C)provide advice to consumers on how they should handle their finances.
D)help ensure that there is enough money in circulation.

Question

Quizplus · Accepted Answer

Financial intermediaries act as middlemen between savers and borrowers by borrowing funds from savers and lending them to borrowers. They play a crucial role in allocating funds efficiently in the economy, helping to ensure that there is a sufficient supply of credit for businesses and households. While some financial intermediaries may also provide advice to consumers on their finances, this is not their primary role. They do not provide funds to the federal government to cover the budget deficit, nor do they help ensure that there is enough money in circulation.

The Main Role of Financial Intermediaries Is to