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Commerce · Q482

Banking and Financial Institutions

Graduate and Post Graduate · Commerce · question 482

Q482

Which of the following are the characteristic of a financial intermediary? 1. It introduces borrowers to lenders. 2. It has assets which exceed liabilities. 3. It increases liquidity for lenders. 4. It reduces transaction costs for borrowers and lenders. 5. It makes excess profit.

A.
2 and 3
B.
3 and 4
Answer
C.
1, 2 and 3
D.
3, 4 and 5

Answer: Option B

Solution

Answer: Option B
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