Questions: Intermediaries may include:
Multiple Choice
commercial banks
mutual funds
investment banks
All of the choices are correct.
Transcript text: Intermediaries may include:
Multiple Choice
commercial banks
mutual funds
investment banks
All of the choices are correct.
Solution
Answer
The answer is All of the choices are correct.
Explanation
Option 1: Commercial banks
Commercial banks act as intermediaries by accepting deposits from individuals and businesses and then lending those funds to borrowers. They facilitate the flow of money within the economy, making them a key type of financial intermediary.
Option 2: Mutual funds
Mutual funds pool money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities. They act as intermediaries by allowing individual investors to access a diversified investment portfolio managed by professional fund managers.
Option 3: Investment banks
Investment banks serve as intermediaries in the financial markets by helping companies raise capital through the issuance of stocks and bonds. They also provide advisory services for mergers and acquisitions, making them crucial intermediaries in the financial system.
Since all the options listed are types of financial intermediaries, the correct choice is "All of the choices are correct."