Financial intermediation is best defined as the process by which
A) inflation is controlled.
B) corporations issue new stock.
C) liabilities are liquidated.
D) financial institutions accept savings from savers and make loans to investors.

Question

Quizplus · Accepted Answer

Financial intermediation is the process by which financial institutions accept savings from savers and make loans to investors, thereby facilitating the flow of funds from savers to investors. This allows savers to earn a return on their savings and investors to secure funding for their projects, leading to economic growth and development.

Financial Intermediation Is Best Defined as the Process by Which