Which of the following best defines a financial intermediary?
a) An asset sold by a company which entitles the buyer to partial ownership.
b) A claim by a buyer to a future by a seller.
c) A financial institution that transforms investor funds into financial assets.

A financial intermediary is an institution that connects two parties in a transaction, for example, commercial banks that take deposits from people at a low interest rate and then lend the money to borrowers at a higher interest rate. According to this definition which best defines a financial intermediary is a financial institution that transforms investor funds into financial assets.

Which of the following best defines a financial intermediary? a) An asset sold by a company which entitles the buyer to partial ownership. b) A claim by a buyer to a future by a seller. c) A financial institution that transforms investor funds into financial assets.

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Which of the following best defines a financial intermediary?
a) An asset sold by a company which entitles the buyer to partial ownership.
b) A claim by a buyer to a future by a seller.
c) A financial institution that transforms investor funds into financial assets.