Institutions that serve as the bridge between savers and borrowers are known as
A) commercial banks.
B) credit unions.
C) financial intermediaries.
D) securities firms.

Question

Quizplus · Accepted Answer

Financial intermediaries are institutions or companies that act as middlemen between savers and borrowers. They include banks, credit unions, insurance companies, and investment companies. Their primary function is to collect funds from savers and then invest those funds in financial assets or lend them to borrowers who need funds for their business or personal expenses. By offering a range of financial products and services, financial intermediaries provide an efficient channel for the flow of funds in the economy.

Institutions That Serve as the Bridge Between Savers and Borrowers