Financial Awareness - Risk, Stability & Emerging Finance
Which of the following best describes the role of financial intermediaries in financial markets?
Which of the following best describes the role of financial intermediaries in financial markets?
hard Q9 of 15
Step-by-Step Solution
Step 1: Understand the role of financial intermediaries
Financial intermediaries like banks, mutual funds, and NBFCs connect savers with borrowers, facilitating efficient fund flow.Step 2: Analyze options
Manufacturing financial products is not their primary role. Regulation of stock exchanges is done by SEBI. Interest rates are influenced by market and RBI, not set by intermediaries.Step 3: Why other options are incorrect
Manufacturing financial products is a function of financial institutions but not the core intermediary role. Regulators set rules, not intermediaries. Interest rates are market-driven and regulated by RBI.Final Answer:
They facilitate the flow of funds between savers and borrowers → Option DQuick Check:
Financial intermediaries role = facilitate fund flow ✅
Quick Trick: Intermediaries = bridge between savers and borrowers.
Common Mistakes:
- Confusing intermediaries with regulators or rate setters.
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