Which Statement Best Defines Financial Intermediaries

question 164

Multiple Choice

Which statement best defines financial intermediaries?

• A) They are the same as financial markets.
• B) They are individuals who make a profit by buying a stock low and selling it high.
• C) They are a more general name for financial assets, such as stocks, bonds, and chequing accounts.
• D) They are financial institutions through which savers can indirectly provide funds to borrowers.

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Definitions:

Differentiation Strategy

A business approach that involves making a product or service distinct from competitors' offerings through unique features, quality, or branding.

Profit Margins

A financial metric indicating the percentage of revenue that exceeds the cost of goods sold, representing profitability.

Low-cost Strategy

A competitive strategy focusing on offering products or services at the lowest possible price point to gain market share.

Technological Synergy

The heightened effectiveness or efficiency achieved when various technological systems operate together in coordination.