A financial intermediary that provides liquid assets in the form of deposits to savers and uses its funds to finance illiquid investment spending needs of borrowers is a(n):
A)insurance company.
B)bank.
C)pension fund.
D)hedge fund.

Question

Quizplus · Accepted Answer

Banks are financial intermediaries that provide depositors with liquid assets and use those funds to finance the investment needs of borrowers. This is done through activities such as lending, investing in securities, and providing various financial services. Insurance companies, pension funds, and hedge funds are different types of financial intermediaries with different business models and purposes.

A Financial Intermediary That Provides Liquid Assets in the Form