Question

Match​ (by number) each financial intermediary with its​ description:   Financial Intermediary Commercial Bank nothing Savings and Loan Credit Union nothing Mutual Fund 1. These financial institutions are very small cooperative lending institutions organized around a particular​ group: union​ members, employees of a​ firm, and so forth. They acquire funds from deposits called shares and primarily make consumer loans. 2. These intermediaries raise funds by selling commercial paper​ (a short-term debt​ instrument) and by issuing stocks and bonds. They lend these funds to consumers and to small businesses. 3. These financial intermediaries raise funds primarily by issuing checkable​ deposits, savings​ deposits, and time deposits. They then use these funds to make​ commercial, consumer, and mortgage loans and to buy U.S. government securities and municipal bonds. 4. These depository institutions obtain funds primarily through savings deposits​ (often called​ shares) and time and checkable deposits. In the​ past, these institutions were constrained in their activities and mostly made mortgage loans for residential housing. 5. These financial intermediaries acquire funds by selling shares to many individuals and use the proceeds to purchase diversified portfolios of stocks and bonds.

Answer 1

1. These financial institutions are very small cooperative lending institutions organized around a particular​ group: union​ members, employees of a​ firm, and so forth. They acquire funds from deposits called shares and primarily make consumer loans.: Savings and loan credit union.

These are small institutes that help a certain group of people that come together for credit needs.

2. These intermediaries raise funds by selling commercial paper​ (a short-term debt​ instrument) and by issuing stocks and bonds. They lend these funds to consumers and to small businesses: Commercial banks. Commercial banks do not themselves only to accept deposits and lending to needy and issue commercial papers and other short terms credit instruments.

3. These financial intermediaries raise funds primarily by issuing checkable​ deposits, savings​ deposits, and time deposits. They then use these funds to make​ commercial, consumer, and mortgage loans and to buy U.S. government securities and municipal bonds: Commercial banks.

4. These depository institutions obtain funds primarily through savings deposits​ (often called​ shares) and time and checkable deposits. In the​ past, these institutions were constrained in their activities and mostly made mortgage loans for residential housing : Commercial banks.

5. These financial intermediaries acquire funds by selling shares to many individuals and use the proceeds to purchase diversified portfolios of stocks and bonds : Mutual funds.

It is an inherent function of any mutual fund to attract money from small investors and invest is stocks in the market and ensure god returns.