Statement I: Financial intermediaries repackage the flow of deposits,insurance premiums,and pension contributions into larger chunks that are lent out.
Statement II: Banks are one of several types of financial intermediaries.

A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.

Financial Intermediaries

Institutions that facilitate the channeling of funds between lenders and borrowers by accepting funds from lenders and loaning funds to borrowers.

Insurance Premiums

Payments made by individuals or businesses to insurance companies to cover the cost of insurance policies.

Repackage

To change the packaging of a product, potentially to refresh the brand image, improve functionality, or target a different consumer segment.