CSULB - FIN 300: Ch. 3 fully solved rated A+

CSULB - FIN 300: Ch. 3Financial Intermediaries - correct answer Firms, such as banks, mutual funds, pension funds, and insurance companies, that borrow funds from savers and lend them to borrowers. In this way, small surplus units can be packaged together to meet the needs of large deficit economic units. Financial Services - correct answer The different kinds of services provided by financial institutions such as banks, credit unions, insurance companies and other similar businesses. Some of the services offered are: 1) Denomination Matching 2) Maturity Matching 3) Absorbing Credit Risk Denomination Matching (Financial Services) - correct answer Financial Services: - A bank, S&L, or insurance company can take small amounts of deposits from a lot of people to make a large pool of money to therefore loan to those who usually require larger amounts of funds (DEU). - They can borrow for business purposes, or to buy a home or automobile. Maturity Matching (Financial Services) - correct answer Financial Services: - A finance technique that seeks to match the maturity of current assets to maturities of current liabilities.