INSTITUTIONS SERVING AS LINKS BETWEEN SURPLUS AND DEFICIT UNITS CAN BE IDENTIFIED AS

• A. tax officers
• B. pension offices
• C. financial intermediates ✓
• D. acceptance houses

The answer to the question is: C. financial intermediates

Financial intermediaries can be identified as institutions that serve as links between surplus and deficit units in an economy. These intermediaries play a crucial role in facilitating the flow of funds from those who have excess funds (surplus units) to those who are in need of funds (deficit units). They act as intermediaries by accepting funds from surplus units and channeling them to deficit units through various financial instruments such as loans, stocks, and bonds. This process helps to efficiently allocate resources within the economy and promote economic growth.

Financial intermediaries can take various forms, including banks, credit unions, insurance companies, mutual funds, and pension funds. These institutions play a pivotal role in the financial system by providing a range of services such as deposit-taking, lending, investment management, and risk pooling. By performing these functions, financial intermediaries help to reduce information asymmetry, transaction costs, and liquidity risk for both surplus and deficit units.