Institutions that acquire funds from savers and then lend those funds to borrowers are called
A) state banks.
B) monetary mediums.
C) financial intermediaries.
D) Federal Reserve banks.

Question

Quizplus · Accepted Answer

Financial intermediaries, such as banks, credit unions, and investment companies, play a crucial role in the financial system by channeling funds from savers to borrowers. They take deposits from individuals and businesses and use those funds to make loans to individuals, businesses, and governments. This process is known as intermediation and is essential for the efficient functioning of the economy. State banks, monetary mediums, and Federal Reserve banks do not necessarily fit this description.

Institutions That Acquire Funds from Savers and Then Lend Those