Question: a bank issues commercial paper to an insurance company the...
Question details
A bank issues commercial paper to an insurance company. The insurance company pays for them with the funds raised by issuing bonds to Mrs Smith. The bank then buys shares issued by Skyscrapper, which is funding a new retiring village.
Who is the financial intermediary?
| A. |
Skyscrapper |
|
| B. |
The insurance company |
|
| C. |
The bank |
|
| D. |
Both A and B |
|
| E. |
Both B and C |
Solution by an expert tutor
