Financial Institution Description They accept deposits from savers and make loans to people who need it. They provide various services, such as checking accounts and money market transactions, to facilitate capital exchange between savers and people who need it. They are owned by members so that members can share funds among themselves. Members who save deposit the funds. These funds are then loaned to members who need the funds. They are a pool of assets that trade like stocks on an exchange. They track a group of stocks, such as all stocks in an index or stocks of companies in emerging markets.

Question

Brindle

Business

4 November, 06:19

Financial Institution Description They accept deposits from savers and make loans to people who need it. They provide various services, such as checking accounts and money market transactions, to facilitate capital exchange between savers and people who need it. They are owned by members so that members can share funds among themselves. Members who save deposit the funds. These funds are then loaned to members who need the funds. They are a pool of assets that trade like stocks on an exchange. They track a group of stocks, such as all stocks in an index or stocks of companies in emerging markets.

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Houston Holland · Answer 1

They accept deposits from savers and make loans to people who need it.

Explanation:

The primary role of financial institutions is to act as an intermediary between depositors and borrowers.

They accept deposits from depositors and pay them lower interest rates, while they give out loans to the borrower at higher interest rates.

Regulatory authorities control the interest rates that financial institutions operate with to avoid exploitation of customers.