Two of the economy’s most important financial intermediaries are a. suppliers of funds and demanders of funds. b. banks and the bond market. c. the stock market and the bond market. d. banks and mutual funds.
d. banks and mutual funds.
Financial intermediaries are bodies or individuals that connect surplus and deficit agents. These institutions serve as middlemen among diverse parties in financial transactions. These include banks, mutual funds, pension funds, building societies etc. Banks and mutual funds are two of the economy's most important financial intermediaries.
The correct answer is D.
Bank intermediaries are those with the capacity to issue money. Within this group, we find private banks and savings banks. They offer services such as deposit-taking, loans, and credits, financial products such as cards, pension funds, and insurance.
A mutual fund is a Collective Investment Institution that functions as a savings instrument that concentrates the contributions made by some people who wish to invest their savings.
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