Certified Management Accountant Practice Exam

Question: 1 / 430

What type of market activity is not typically associated with financial intermediaries?

Buying and selling securities

Providing loans to businesses

Manufacturing products

Financial intermediaries play a crucial role in the financial system by bridging the gap between savers and borrowers through various activities. Buying and selling securities, providing loans to businesses, and offering investment advice are all traditional functions of financial intermediaries such as banks, mutual funds, and brokerages.

Manufacturing products, however, is not typically associated with financial intermediaries. This activity pertains more to manufacturing firms that produce goods or services rather than mediating financial transactions. Financial intermediaries focus on financial services rather than the production of physical products, which distinguishes their role in the economy. This clear separation of functions clarifies why manufacturing products does not align with the primary activities of financial intermediaries.

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Offering investment advice

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