Statement I: Insurance companies are a form of financial intermediary.
Statement II: The United States Treasury generally borrows through 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 Intermediary

An institution that acts as a middleman between savers and borrowers, facilitating the flow of funds in the economy, such as banks or credit unions.

Insurance Companies

Entities that provide financial protection and reimbursement of damages to individuals and businesses in exchange for premiums.

United States Treasury

The department of the federal government responsible for managing national finances, including producing currency, collecting taxes, and issuing government debt.