ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -banks and credit unions are financial intermediaries since they act as a middle man between households wanting to borrow and those wanting to lend 2. a financial advisor is a financial intermediary since he/she gives financial advice to households regarding saving.

Detailed explanation-2: -What are the examples of financial intermediaries? Some of the examples are commercial banks, stock exchanges, mutual fund companies, insurance companies, credit unions, non-banking finance companies (NBFCs), pension funds, building societies, financial advisors, investment bankers, escrow companies.

Detailed explanation-3: -Answer and Explanation: The stock market, bond market, and banks are all financial intermediaries but the government is not. The government is not a financial intermediary but it has become involved in financial intermediation.

Detailed explanation-4: -A credit union is a nonprofit financial institution that’s owned by the people who use its financial products. Credit union members can access the same kinds of products and services as offered by a traditional bank, such as credit cards, checking and savings accounts and loans.

Detailed explanation-5: -The institutions that are commonly referred to as financial intermediaries include commercial banks, investment banks, mutual funds, and pension funds.