Final answer:
Shareholders vote for the board of directors to manage the company, and banks are financial intermediaries bridging depositors and borrowers. Different bank accounts serve various purposes and offer varying rates of liquidity and interest. Bonds carry certain risks despite providing fixed payments.
Step-by-step explanation:
The shareholders of a public company choose the company managers through a democratic voting process during annual general meetings or special meetings. Shareholders usually vote on a slate of nominees to the board of directors, who in turn oversee the management and make key decisions, including the selecting of upper management. Banks are referred to as financial intermediaries because they act as middlemen between depositors who supply capital and borrowers who demand capital. Banks take in funds from depositors and lend them out to borrowers, thereby facilitating the flow of money in the economy.
Regarding different types of accounts, banks often offer various options such as checking accounts, savings accounts, money market accounts, and certificates of deposit (CDs). Each type of account serves different needs: checking accounts for daily transactions, savings accounts for earning interest, money market accounts for higher interest rates with some liquidity, and CDs for investing money at a fixed interest rate for a predetermined term. Bonds can be somewhat risky investments because, despite offering fixed interest payments, they are subject to credit risk, interest rate risk, and inflation risk, potentially affecting the principal value and returns.