In an essay of at least two well developed paragraph explain how financial institutions ffect businesses and households

Answer

Financial institutions affect households and business by determining eligibility towards receiving loans. In addition to that, fees being charged by the institutions may force other individuals to find alternative financial services.

Explanation

A financial institution is a finance company that makes loans available to clients. It facilitates financial transactions with businesses and companies. Financial institutions have strict time parameters that may sometimes limit business owners when conducting transactions, for example routing of mails and internet banking. These institutions have fees that they charge that may force many business owners to find alternative financial services. Moreover, financial institutions have affected households and businesses because they determine who is eligible for a loan. For example, if a person is not approved for a loan, they will not be able to pay for housing in form of mortgage.