Which of the following is NOT an example of a financial intermediary?
Click on the arrows to vote for the correct answer
A. B. C. D.A
A financial intermediary is an institution or individual that acts as a middleman between two parties in a financial transaction. Financial intermediaries play an important role in the financial system, as they help to channel funds from savers to borrowers and provide a range of financial services to individuals and businesses.
Based on this definition, the answer to the question is A. International Business Machines, Inc. (IBM) is not an example of a financial intermediary. IBM is a multinational technology company that provides various products and services, including computer hardware, software, and consulting services. However, it does not operate as a financial intermediary that facilitates the flow of funds between savers and borrowers.
In contrast, the other answer choices are all examples of financial intermediaries:
B. Vanguard Mutual Fund: Vanguard is a mutual fund company that pools money from investors and uses it to purchase a diversified portfolio of stocks, bonds, or other securities.
C. El Dorado Savings and Loan Association: El Dorado Savings and Loan Association is a financial institution that accepts deposits from customers and provides loans to borrowers, primarily for home mortgages.
D. Bank of America: Bank of America is a large commercial bank that provides a wide range of financial services, including deposit accounts, loans, credit cards, and investment services.
In summary, while IBM is a well-known company, it is not an example of a financial intermediary, as it does not facilitate the flow of funds between savers and borrowers. The other answer choices, Vanguard Mutual Fund, El Dorado Savings and Loan Association, and Bank of America, are all examples of financial intermediaries.