Banks are called 'financial intermediaries' because they

stand between the government and the RBICorrect answerYour answerbring together savers who have spare funds and borrowers who need fundsCorrect answerYour answerbuy and sell goods for customersCorrect answerYour answerproduce goods in the middle stageCorrect answerYour answer

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CorrectNot quiteAnswer B

Correct answer: B

Savers deposit; banks lend to firms and households who want to spend or invest.

Concept: Financial intermediation
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsWhat commercial banks do

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Ten questions from Money Creation by Banks, at your own pace.

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Banks are called 'financial intermediaries' because they

Explanation