Financial Intermediaries Are

question 22

Multiple Choice

Financial intermediaries are

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

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Definitions:

Annual Premium

The amount paid annually for an insurance policy, providing coverage over a specified period of time.

Short-rate Refunds

A partial refund of premium on an insurance policy that has been canceled by the policyholder before its expiration, calculated using a method that is less than prorated.

Premium Rate

a higher price or cost than the standard, often for services that are considered to be of better quality or with added features.

Short Rate

The interest rate applied to the shortest duration loans or borrowings, often seen in monetary policy adjustments.