click below
click below
Normal Size Small Size show me how
PF Lesson 1
Lesson 1 of Ashworth Personal Finance Program Notes
Question | Answer |
---|---|
Financial Institutions that act as a go-between for savers and borrowers. | Financial Intermediaries |
F.I. that generally offers two major services to the public: 1) Transaction Accounts 2)Direct Loans. | Commercial Banks |
Non Profit oriented financial institution opened solely for the benefit of its customers. They only cater to the needs of individuals and families. | Credit Unions |
Savings Institutions that mainly serve individuals and families, accepting saving and checking deposits from households | Thrift Institutions aka S&L Associations or Savings Banks |
Financial Institution that specializes in accepting savings deposits and making mortgage and other loans. | Thrift Institutions aka S&L Associations or Savings Banks |
More commonly known as Mutual Fund Companies, they obtain funds from many investors by selling shares. | Investment Companies (Mutual Funds) |
Exist primarily to offer the small saver a means of obtaining diversification. | Investment Companies (Mutual Funds) |
A specialized type of Mutual Fund that invests in short-term, highly liquid investments. | Money Market Fund |
The spreading out of risk | Diversification |
Financial Institution created so that many small investors can pool funds and invest in commercial Real Estate. | Real Estate Investment Trust (REIT) |
F.I. that makes loans to individuals and families - usually installment loans to purchase consumer goods. | Consumer Finance Company |
F.I. that lends indirectly to households through retail outlets. | Sales Finance Company |
F.I. that exists to promote the sales of a particular manufacturer's product by offering convenient & affordable credit. | Captive Finance Company |
F.I. that makes loans to business that need working capital or long-term credit. | Commercial Finance Company |
Instead of lending funds, these F.I.s purchase high cost goods and lease the equipment to the user. | Leasing Companies |
They bring together buyers and sellers of securities so that financial transactions can occur. | Securities Broker |
Any form of ownership that can be easily traded on a secondary market, such as stocks and bonds. It also includes their derivatives, such as futures contracts, options, or mutual funds. | Securities |
Brings buyers and sellers together, and they also purchase securities for their own account | Securities Dealers |
They underwrite new issues of corporate stocks, bonds, and state and local government debt securities. Unlike commercial banks & retail banks, they do not take deposits. | Investment Bankers |
"To support by guarantee of Money." or Buy the entire issue (for new issues). | Underwrite (Underwriting) |
They acquire Mortgage securities from the construction of new Real Estate and sell them to long-term lenders. | Mortgage Bankers |