Question

Banks and other financial institutions engage in financial intermediation, which 1) A) can hurt the performance of the economy. B) has no effect on economic performance. C) can benefit economic performance. D) involves borrowing from investors and lending to savers.

Answer 1

D) involves borrowing from investors and lending to savers.

Step-by-step explanation:

Financial systems looks to allocated money from the lenders to the borrowers for a fee and a rate.