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An insurance company is

A. not a financial intermediary because they do not take direct deposits and do not make loans.
B. a financial intermediary because they take deposits and make mortgages and car loans.
C. not a financial intermediary because financial intermediaries act as a​ go-between for borrowers and lenders.
D. a financial intermediary because they take premiums and use them to purchase financial securities.

1 Answer

2 votes

Answer:

a financial intermediary b/c they take premiums and use them to purchase financial securities

Step-by-step explanation:

A business that provides coverage, in the form of compensation resulting from loss, damages, injury, treatment or hardship in exchange for premium payments. The company calculates the risk of occurrence then determines the cost to replace (pay for) the loss to determine the premium amount.

User Andrey Grachev
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