173k views
3 votes
Financial institutions that lend the funds that savers provide to borrowers. a. mutual funds c. pensions b. premiums d. financial intermediaries

2 Answers

6 votes
Hello there.

Financial institutions that lend the funds that savers provide to borrowers, financial intermediaries.
User Dgiulian
by
6.5k points
4 votes

Answer:

d. financial intermediaries

Step-by-step explanation:

Financial institutions have a financial intermediation role in lending. Lenders deposit the amounts in these institutions. Institutions then lend these amounts to borrowers and charge interest. When borrowers pay the amount with interest, financial institutions keep a portion of the interest and pass the rest on to their lenders through their accounts. This is how the credit market works not only in the US, but around the world.

User Mayleen
by
5.3k points