An example of a financial intermediary is:
A) a stockbroker.
B) the Australian Securities Exchange.
C) the Australian Securities Commission.
D) an insurance company.

Question

Quizplus · Accepted Answer

An insurance company is a financial intermediary that provides a range of products and services that help individuals and businesses manage financial risks. Insurance companies also invest assets from the premiums paid by policyholders, making them an important source of funding for various types of investments, such as infrastructure projects and real estate development. Option A is incorrect because a stockbroker is a middleman who facilitates the buying and selling of securities but does not channel funds between borrowers and lenders directly. Option B is incorrect because the Australian Securities Exchange is a marketplace where securities are bought and sold, but it does not provide any intermediation services. Option C is incorrect because the Australian Securities Commission was a regulatory agency that was merged into the Australian Securities and Investments Commission in 1998.

An Example of a Financial Intermediary Is