An insurance company is
a. not a financial intermediary because they do not take direct deposits and do not make loans.
b. a financial intermediary because they take premiums and use them to purchase financial securities.
c. not a financial intermediary because financial intermediaries act as a go-between for borrowers and lenders.
d. a financial intermediary because they take deposits and make mortgages and car loans.

The larger the investment you make, the easier it will be to: get money from other sources. guarantee cash flow. buy insurance. streamline your products.

Wilson company paid $5,000 for a 4-month insurance premium in advance on november 1, with coverage beginning on that date. the balance in the prepaid insurance account before adjustment at the end of the year is $5,000, and no adjustments had been made previously. the adjusting entry required on december 31 is: (a) debit cash. $5,000: credit prepaid insurance. $5,000. (b) debit prepaid insurance. $2,500: credit insurance expense. $2500. (c) debit prepaid insurance. $1250: credit insurance expense. $1250. (d) debit insurance expense. $1250: credit prepaid insurance. $1250. (e) debit insurance expense. $2500: credit prepaid insurance. $2500.

From what part of income should someone take savings?