Which of the following is an example of 'Other forms of Financial Intermediaries'?

• A. Insurance company
• B. Building societies
• C. Pension funds
• D. Discount house

Answer: (C)

Understanding the role of non-bank financial intermediaries helps here. These institutions gather savings from households and institutions and then invest those funds to generate returns for others, effectively channeling money from savers to borrowers.

Pension funds fit this role particularly well. They collect contributions from workers and employers, pool them, and invest in a diversified portfolio to fund future retirement benefits. This long-term pooling and investing is the core function of an intermediary: turning individual savings into professional, managed investments that support long-term financing in the economy.

While other options (like insurance companies or building societies) also perform intermediary functions, the example that best embodies the traditional form of “other financial intermediaries” focused on long-term savers and investment is pension funds.