Question:
‘It is a process that allocates or directs funds available for investment into their most productive instrument opportunity.’ This is known as:
‘It is a process that allocates or directs funds available for investment into their most productive instrument opportunity.’ This is known as:
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Financial intermediation bridges the gap between surplus and deficit sectors, promoting economic growth and productivity.
Updated On: Feb 21, 2025
- Financial Planning
- Financial Intermediation
- Allocative Function
- Capital Budgeting
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The Correct Option is B
Solution and Explanation
Financial intermediation refers to the process of transferring funds from savers to borrowers or investors. It ensures that the funds are directed toward the most productive investment opportunities in the economy.
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