Types of Financial Institutions

This set of flashcards covers key vocabulary related to financial institutions, including definitions and characteristics of various types of banks and financial organizations.

Financial Institutions

Organizations that facilitate the flow of money between savers and borrowers.

Commercial Banks

Financial institutions that offer a full range of services, including checking and savings accounts, loans, and financial advice.

Savings and Loan Associations (S&Ls)

Institutions that hold customers' funds in savings accounts and invest mainly in home loans.

Credit Unions

Non-profit banks set up by members for their benefit, usually offering loans and interest on savings.

Federal Reserve System

The central bank of the United States, also known as 'The Fed,' which regulates member banks and the money supply.

Mortgage Companies

Financial institutions that provide loans specifically for buying real estate.

Finance Companies

Institutions that offer short-term loans at higher interest rates than traditional banks.

Insurance Companies

Organizations that provide protection against financial loss and also offer loans.

Brokerage Firms

Companies that buy and sell securities and offer various financial services.

Member Banks

Financial institutions that are part of the Federal Reserve System and follow its regulations.