Financial Institutions – Exam 1, Lecture Notes, 2026 – Complete Study Material

Financial Institutions – Exam 1, Lecture Notes, 2026 –
Complete Study Material

financial institution - correct answer ✔✔ a business that accepts funds from investors and
provides these funds to users of capital



financial intermediaries - correct answer ✔✔ any financial institution that collects funds from
investors and supplies these funds to businesses and other entities that need funds



financial intermediation - correct answer ✔✔ the process by financial institutions of acquiring
funds and channeling them to users of funds



depository financial institution - correct answer ✔✔ raise funds by accepting deposits from
customers



non-depository financial institution - correct answer ✔✔ obtains funds by methods other than
accepting deposits



commercial bank - correct answer ✔✔ a depository financial institution that accepts deposits
and makes loans



equity - correct answer ✔✔ funds that owners have invested in their business



credit union - correct answer ✔✔ a depository financial institution that is owned by its
members. they finance the credit union by making deposits and it extends loans to its members



finance company - correct answer ✔✔ a financial institution that extends loans to its customers
but raises funds from investors rather than accepting deposits