commercial banks
mortage banks
financial intermediaries
the Central Bank
insurance companies
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A financial intermediary is an institution or individual that serves as a middleman among diverse parties in order to facilitate financial transactions. Common types include commercial banks, investment banks, stockbrokers, pooled investment funds, and stock exchanges
correct answer
According to Thompson (1982) financial intermediaries help to bridge the gap between borrowers and lenders by creating a market in two types of security, one for the lender and the other for the borrower.
The correct answer is D. the Central Bank. It plays a crucial role in influencing the supply of loanable funds through its monetary policy decisions.
