Final answer:
Asset Management in intermediary finance refers to managing financial assets for clients, focusing on achieving investment goals through strategies that balance return, risk, and liquidity.
Step-by-step explanation:
Asset Management in the context of intermediary finance most accurately refers to Option 2: Asset Management refers to managing financial assets for clients. It encompasses a wide range of services provided by financial institutions where they handle investments on behalf of clients to meet specified investment goals. These services may include handling a portfolio of financial assets like stocks, bonds, mutual funds, and more. Investment strategies and asset management require careful consideration of factors such as the average expected return, the degree of risk, and the liquidity of investments. Financial intermediaries, like banks and investment firms, play a crucial role in the financial system by coordinating supply and demand for financial capital and offering various accounts and investment products. To generate wealth and provide for future capital needs, businesses and individuals engage in purchasing financial assets, such as bonds and stocks, and investing in mutual funds with the help of these asset managers.