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

• A. Leasing companies
• B. Pension funds
• C. Mutual funds
• D. Building societies

Answer: (A)

Leasing companies exemplify this category because they finance asset purchases by acting as an intermediary between investors who provide funds and businesses that need assets. They acquire the asset and lease it to the customer, receiving lease payments that cover cost and provide return, rather than taking deposits like banks. This direct asset-financing role, funded from investors rather than customer deposits, is the hallmark of these other forms of financial intermediaries. Pension funds and mutual funds are investment pools that allocate savers’ money to a range of assets, not typically financing specific asset purchases for a user. Building societies are traditional deposit-taking lenders, more like banks. So leasing companies best fit the description of an other form of financial intermediary.