Banks are financial intermediaries because they a. b. c. d. e. a.receive new Federal Reserve notes from the Fed and put them into circulation b.bring together the two sides of the market-savers and borrowers c.bring different savers into contact with each other d.bring about the merger of smaller banks to make larger ones e.resolve disputes between stock brokers, mortgage companies, insurance agencies, and other financial institutions Solution option B is correct. because, bank is a finacial intermediary which collects funds from the people who are having excess and lend them to the people who are in need of them. the definition of a bank is : it is a profit seeking firm which deals with money and credit. the main function of a bank is accept deposits and lend loans to the needed people. so, option B is correct..