Financial intermediaries are institutions that

Question

Quizplus · Accepted Answer

Financial intermediaries act as an intermediary between savers and investors by transferring funds in the form of loans. They mobilize savings and channel them into productive investment, thus promoting economic growth. While they may indirectly affect interest rates, they do not set them, nor do they create money or provide checking accounts (these tasks are generally carried out by central banks and commercial banks, respectively).

Financial Intermediaries Are Institutions That