Final answer:
Banks act as financial intermediaries, pooling deposits and providing loans. The entity that fits this description in the question's context is a financial institution. The correct option is d.
Step-by-step explanation:
A financial intermediary or depository institution is an entity that stands between savers and borrowers, channeling funds from those who want to save money into the hands of those who wish to borrow.
Banks are a prime example of a financial intermediary, and they operate by taking deposits from savers and then pooling these funds to provide loans to individuals or businesses.
Financial intermediaries play a crucial role in the economy by ensuring the smooth flow of capital and by identifying creditworthy borrowers to maintain a healthy lending environment.
Among the options provided (a) Credit Union, b) Hedge Fund, c) REIT, and d) Financial Institution), the correct term that refers to such an entity that invests in trust deeds and mortgage loans is most closely associated with a financial institution. The correct option is d.