An intermediary that can legally act for only one bank in receiving deposits is best described as which term?

• A. Arranger.
• B. Broker.
• C. Agent.
• D. Restricted agent.

Answer: (C)

The situation describes an agency relationship. The bank is the principal and the intermediary is authorized to act on the bank’s behalf to solicit and receive deposits. Because this authority is limited to one bank, the intermediary functions as that bank’s agent, bound to follow the bank’s instructions and represent the bank in dealing with customers.

This differs from a broker, who typically facilitates transactions across multiple institutions and doesn’t usually have binding authority to receive deposits for a single bank. An arranger deals with structuring financing rather than taking deposits, and a term like restricted agent isn’t the standard label used for this setup. So the term that best fits an intermediary acting legally for one bank to receive deposits is agent.