Match the intermediary with the characteristic that best describes its function.
I. Provide protection from adverse events.
II. Pool funds of small savers and invest in either money or capital markets.
III. Provide consumer loans and real estate loans funded by deposits.
IV. Accumulate and transfer wealth from work period to retirement period.
V. Underwrite and trade securities and provide brokerage services.
1. Thrifts
2. Insurers
3. Pension funds
4. Securities firms and investment banks
5. Mutual funds
A)1,3,2,5,4
B)4,2,3,5,1
C)2,5,1,3,4
D)2,4,5,3,1
E)5,1,3,2,4

Question

Quizplus · Accepted Answer

I matches Insurers as they provide protection from adverse events. II matches Mutual funds as they pool funds from small savers for investment. III matches Thrifts, which are known for providing consumer and real estate loans. IV is best associated with Pension funds, which help in transferring wealth to retirement. V describes the functions of Securities firms and investment banks, which underwrite, trade securities, and offer brokerage services.

Match the Intermediary with the Characteristic That Best Describes Its