Question

Which of the following features best defines a financial intermediary? 

 An asset sold by a company which entitles the buyer to partial ownership 

 A claim by a buyer to a future payment by a seller 

 A financial institution that transforms investor funds into financial assets 

 A collection of stocks and bonds issued to investors

Answer 1

a financial institution that transforms investor funds into financial assets

the above is the right answer as financial intermediaries through investment banking, brokage and other operations channelize investors money.