Final answer:
The entity that facilitates the flow of funds from savers to borrowers in financial markets is a financial institution, which acts as an intermediary. Liquidity refers to turning assets into cash without significant loss of value. Banks regulate the monetary supply and operate primarily within the money market.
Step-by-step explanation:
An intermediary in the context of financial services is an entity that stands between savers who deposit funds and borrowers who receive loans. Essentially, a financial intermediary comprises of financial institutions like banks, which collect deposits from savers into a common pool and make these funds available to borrowers. Banks, as such intermediaries, help reduce transaction costs associated with finding a lender or a borrower for money, streamline transactions making them safer and more efficient, and contribute significantly to money creation within an economy.
Now, to answer the specific questions asked:
- The intermediary between the leader and the borrowers when providing financial services is A. Financial institution.
- The means of converting assets into cash without undue loss of value is A. Liquidity.
- Financial institutions control the B. Monetary supply regulation of money in an economy.
- The market for lending and borrowing of short term funds is A. Money market.
- The link between savers and borrowers that helps to establish a connection between savers and investors is B. Financial market.