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14 December, 15:00

Which of the following best defines a financial intermediary?

a) An asset sold by a company which entitles the buyer to partial ownership.

b) A claim by a buyer to a future by a seller.

c) A financial institution that transforms investor funds into financial assets.

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  1. 14 December, 15:29
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    c) A financial institution that transforms investor funds into financial assets.

    Explanation:

    A financial intermediary is an institution that connects two parties in a transaction, for example, commercial banks that take deposits from people at a low interest rate and then lend the money to borrowers at a higher interest rate. According to this definition which best defines a financial intermediary is a financial institution that transforms investor funds into financial assets.
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