ECONOMICS
FEDERAL RESERVE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Goods and Services
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Public Goods and Services
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Either A or B
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None of the above
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Detailed explanation-1: -The major categories of financial institutions are central banks, retail and commercial banks, internet banks, credit unions, savings and loan (S&L) associations, investment banks and companies, brokerage firms, insurance companies, and mortgage companies.
Detailed explanation-2: -Private financial institutions are entities like banks and hedge funds that are owned entirely by shareholders, without a government stake. These entities are still subject to government regulation and oversight but they operate with different end missions in mind.
Detailed explanation-3: -Financial institutions fall into two categories: depository and non-depository institutions. Depository institutions include deposit-focused businesses such as credit unions, banks, and savings associations. In contrast, non-depository institutions include brokerage firms and insurance companies.
Detailed explanation-4: -Financial institutions encompass a broad range of business operations within the financial services sector including banks, trust companies, insurance companies, brokerage firms, and investment dealers. Financial institutions can vary by size, scope, and geography.