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What is the full form of "FISIM"?

A. Fiscal and Shares Management

B. Foreign Institutional Services and Investor Maturity

C. Financial Intermediation Services Indirectly Measured

D. Fiscal Intermediate Solution on Investing in Mutual Fund

Answer: Option C

Solution(By Examveda Team)

FISIM stands for Financial Intermediation Services Indirectly Measured. In the System of National Accounts it is an estimate of the value of the services provided by financial intermediaries, such as banks, for which no explicit charges are made; instead these services are paid for as part of the margin between rates applied to savers and borrowers. The supposition is that savers would receive a lower interest rate and borrowers pay a higher interest rate if all financial services had explicit charges.

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