Financial institutions act as intermediaries between suppliers and demanders of funds. They accept savers' deposits and invest them in such things as business loans or mortgages. This process is called:

The correct answer is: Intermediation.

Explanation:

To begin with, in the financial and business field the process in where the financial institutions act in the middle of money's lenders and money's borrowers is known basically as intermediation. This term consists of the simple action of matching those who needs money with those who are willing to lend money in order to obtain a profit from that lending. Therefore that when the banks, for example, accept the money of people who are saving it decides to use that money to put it in circulation in another activity in the economy in order to make the money grow.

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