Which of the following is a financial intermediary?
A)a mutual fund
B)the stock market
C)a U.S.government bond
D)a wealthy individual who regularly buys and holds large quantities of government bonds

Question

Quizplus · Accepted Answer

A mutual fund acts as a financial intermediary by pooling money from investors and using that money to purchase a diversified portfolio of stocks, bonds, and other securities. The mutual fund then manages the portfolio on behalf of its investors and distributes the returns based on each investor's share of the fund. The stock market is not a financial intermediary but rather a platform for trading securities. A U.S. government bond is a type of security and not a financial intermediary. A wealthy individual who regularly buys and holds large quantities of government bonds is also not a financial intermediary but rather an investor.

Which of the Following Is a Financial Intermediary