Q202
If financial intermediaries are appointed by funds suppliers then these intermediaries are classified as
A.
supplier monitor
B.
funds monitor
C.
delegated monitor
AnswerD.
allocation monitor
Answer: Option C
Solution
Answer: Option C
Solution:
If financial intermediaries are appointed by funds suppliers then these intermediaries are classified as delegated monitor. The delegated monitor is a financial intermediary because it borrows from small investors (depositors), using unmonitored debt (deposits) to lend to borrowers (whose loans it monitors).