Which of the following best defines a financial intermediary?

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

b) A claim by a buyer to a future by a seller.

c) A financial institution that transforms investor funds into financial assets.

c) A financial institution that transforms investor funds into financial assets.

Explanation:

A financial intermediary is an institution that connects two parties in a transaction, for example, commercial banks that take deposits from people at a low interest rate and then lend the money to borrowers at a higher interest rate. According to this definition which best defines a financial intermediary is a financial institution that transforms investor funds into financial assets.