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Stockseconomics-mcqs › stocks
Published
30 May 2019
Last updated
28 May 2026

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Who does a financial intermediary serve as a link between?

Multiple choice question for Stocks. Select an option, then review the explanation below.

Choose the correct answer

Explanation

A financial intermediary acts as a bridge connecting borrowers, who need capital, with lenders, who supply the funds. It does not typically mediate between buyers and sellers, spouses, or labor unions and employers.

Practice related questions from the same subject.

  1. 1.What is the effect of an increase in the budget surplus on the market for loanable funds?
  2. 2.What happens to real interest rates and investment if Pakistani citizens become less future-oriented and reduce their savings at every real interest rate?
  3. 3.What effect does a rise in the budget deficit have on public savings?
  4. 4.What is the effect of a larger budget deficit on the real interest rate and the demand for loanable funds used for investment?
  5. 5.Which combination of government policies is most effective in promoting economic growth?

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