Final answer:
An Auditor is responsible for accounting functions at agencies like the IRS and FDIC, which includes assessing financial records and ensuring legal compliance. Financial institutions offer various account types and are supervised by government agencies to ensure stability and proper risk management. Knowledge of return, risk, and liquidity is essential in personal investment and capital formation.
Step-by-step explanation:
The individual who performs a variety of accounting functions for agencies like the Internal Revenue Service (IRS) and the Federal Deposit Insurance Corporation (FDIC) is most often referred to as an Auditor. Auditors are responsible for ensuring that organizations follow the law and standards for financial reporting. They accomplish this by examining financial records and filing reports based on their assessments. This is in line with the Comptroller of Public Accounts, who is tasked with maintaining accounting records and collecting revenues for the state, as well as preparing annual financial statements.
Understanding the functions of financial institutions is crucial, as they influence both households and businesses by coordinating supply and demand in the capital market. They also provide various types of accounts that come with certain levels of risk and benefits, including the protection offered by the FDIC against bank failures. Bank examiners from agencies such as the Office of the Comptroller of the Currency conduct reviews to ensure banks maintain a positive net worth and appropriate levels of risk.
When it comes to personal finance, being knowledgeable about investment characteristics such as return, risk, and liquidity is important. Banks, acting as financial intermediaries, play a crucial role in capital formation through the savings they collect and convert into loans and investments. These actions ultimately influence the economy's growth and stability.