GK
BUSINESS MANAGEMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
accept deposits
|
|
|
make loans
|
|
|
buy and sell currency and government securities
|
|
|
banks must do all of these
|
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: -Salient feature of Financial Institutions: ❖ It is an institution as well as intermediary. ❖ It channelizes savings fund into investment fund. ❖ It creates financial assets such as deposits, loans, securities etc. ❖ It includes banking and non-banking institutions.
Detailed explanation-3: -Financial institutions therefore encompass banks, trust or insurance companies, credit unions, finance companies, securities firms, leasing companies, etc. In that sense, financial institutions constitute a major component of the financial services sector.
Detailed explanation-4: -Insurance Companies. Insurance companies are businesses that offer protection against potential future losses. Credit Unions. Mortgage Companies. Investment Banks. Brokerage Firms. Central Banks. Internet Banks in the UK. Savings and Loan Associations. More items