A company that takes short term deposits and makes long term loans is a

Question

Quizplus · Accepted Answer

A company that takes short term deposits and makes long term loans is acting as a financial intermediary. This is because they are facilitating the transfer of funds from savers to borrowers, and earning income from the difference in interest rates between the short term deposits and long term loans. Brokerages facilitate the buying and selling of securities, investment banks underwrite and facilitate the sale of securities and advise companies on mergers and acquisitions, and secondary market makers facilitate the buying and selling of securities in the secondary market.

A Company That Takes Short Term Deposits and Makes Long