3.2.5.2 Financial institutions

• Financial institutions play a vital role in channeling funds from savers to borrowers
• Match the type of financial institution with its role:

  Banks ↔️ Accept deposits, lend money

  Credit Unions ↔️ Offer similar services as banks, member-owned

  Investment Banks ↔️ Underwrite securities, provide advisory services

  Insurance Companies ↔️ Provide protection against risks, invest premiums

  Pension Funds ↔️ Manage retirement savings
• Credit unions are similar to banks but are member-owned and operated.
• Insurance companies invest premiums to provide protection against risks.


  True
• What is the primary role of financial institutions in the economy?

  Channel funds from savers to borrowers
• Match the function of financial institutions with its description:

  Channeling funds ↔️ Facilitates the flow of capital

  Facilitating transactions ↔️ Enables economic activity through payments

  Promoting economic growth ↔️ Supports investment and innovation
• Financial institutions provide payment services to facilitate transactions.


  True
• One key function of financial institutions is channeling funds from savers to borrowers.
• Steps in the process of how financial institutions contribute to economic growth:

  1️⃣ Savers deposit funds

  2️⃣ Financial institutions lend funds

  3️⃣ Borrowers use funds for investment

  4️⃣ Economic growth occurs
• What is the primary role of banks?

  Accept deposits, lend money
• What is the role of insurance companies?

  Provide protection against risks
• Financial institutions facilitate transactions by providing payment services and currency exchange.


  True
• Match the type of financial institution with its role:

  Banks ↔️ Lend money

  Credit Unions ↔️ Member-owned operations

  Investment Banks ↔️ Underwrite securities

  Insurance Companies ↔️ Invest premiums

  Pension Funds ↔️ Manage retirement savings
• Financial institutions promote economic growth by supporting investment, innovation, and overall economic development
• Financial institutions facilitate transactions by providing payment services and currency exchange.


  True
• Match the type of financial institution with its role:

  Banks ↔️ Accept deposits

  Credit Unions ↔️ Member-owned operations

  Investment Banks ↔️ Underwrite securities

  Insurance Companies ↔️ Invest premiums

  Pension Funds ↔️ Manage retirement savings
• What is the primary role of financial institutions in channeling funds?

  From savers to borrowers
• Financial institutions promote economic growth by allocating capital efficiently.

  True
• Pension funds manage retirement savings
• Key goals of financial institution regulations

  1️⃣ Maintain financial stability

  2️⃣ Protect consumers

  3️⃣ Promote competition
• Match the regulatory body with its role:

  Central Banks ↔️ Regulate banks, monetary policy

  Financial Conduct Authority (FCA) ↔️ Regulate financial firm conduct

  Prudential Regulation Authority (PRA) ↔️ Supervise safety of institutions

  Securities and Exchange Commission (SEC) ↔️ Regulate securities markets
• What are financial institutions?

  Organizations that manage money
• Financial institutions facilitate transactions and promote economic growth.

  True
• What is the role of banks?

  Accept deposits, lend money
• What do investment banks specialize in?

  Financial advisory services
• Pension funds manage retirement savings and invest in stocks and bonds.
• Credit unions are owned and operated by their members.


  True
• Financial institutions channel funds from savers to borrowers.
• How do financial institutions contribute to economic growth?

  Efficiently allocate capital
• Financial institutions promote economic growth by supporting investment and innovation.


  True
• Financial institutions support economic development by efficiently allocating capital
• Investment banks provide financial advisory and underwriting services.
• Order the steps by which financial institutions channel funds from savers to borrowers.

  1️⃣ Collect deposits from savers

  2️⃣ Lend money to borrowers

  3️⃣ Facilitate the flow of capital
• Financial institutions promote economic growth by supporting investment and innovation
• Financial institutions channel funds from savers to borrowers to facilitate economic growth.

  True
• What is unique about credit unions compared to banks?

  They are member-owned
• Financial institutions support economic growth by efficiently allocating capital
• Financial institutions manage money and provide financial services
• Financial institutions facilitate economic activity by providing payment and currency exchange services.
• Match the type of financial institution with its role:

  Banks ↔️ Accept deposits, lend money

  Credit Unions ↔️ Member-owned, similar services as banks

  Investment Banks ↔️ Underwrite securities, advise financially

  Insurance Companies ↔️ Provide protection, invest premiums

  Pension Funds ↔️ Manage retirement savings