Question

In: Economics

Which of the following features best defines a financial intermediary?  An asset sold by a company which...


Which of the following features best defines a financial intermediary? 
 An asset sold by a company which entitles the buyer to partial ownership 
 A claim by a buyer to a future payment by a seller 
 A financial institution that transforms investor funds into financial assets 
 A collection of stocks and bonds issued to investors

Solutions

Expert Solution

a financial institution that transforms investor funds into financial assets

the above is the right answer as financial intermediaries through investment banking, brokage and other operations channelize investors money.


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