Question

Large businesses in developed economies generally find it more efficient to enlist the services of a financial institution to raise capital. A set of highly efficient financial intermediaries has evolved. In recent years, regulations against diversification of institutions have been largely removed; and today the differences between institutions have become blurred. Still, there remains a degree of institutional identity among them.

Give the correct response to each of the following questions.
a. Large conglomerates that combine many different financial institutions within a single corporation are known as_________
b. Organizations that underwrite and distribute new investment securities and help businesses obtain financing are known as_________
c. The traditional department stores of finance serving a variety of savers and borrowers are known as _________
d. Cooperative associations whose members are supposed to have a common bond are known as ___________
e. Retirement plans funded by corporations or government agencies for their workers and administered primarily by the trust departments Of commercial banks are known are:________

Answer 1

a. Large conglomerates that combine many different financial institutions within a single corporation are known as_________

Financial services corporations.

b. Organizations that underwrite and distribute new investment securities and help businesses obtain financing are known as_________

Investment banks.

c. The traditional department stores of finance serving a variety of savers and borrowers are known as _________

Commercial Banks.

d. Cooperative associations whose members are supposed to have a common bond are known as ___________

Credit Unions.

e. Retirement plans funded by corporations or government agencies for their workers and administered primarily by the trust departments Of commercial banks are known are:________

Pension Funds.

Step-by-step explanation:

During the last financial crisis, it was discovered that the financial sector was not sufficiently supervised. They tended to run their institutions without regard to the financial disasters that their activities might generate in the economy. To forecast financial recklessness, Congress passed the Dodd-Frank Act in 2010. The Act created a new agency for consumer protection in the financial sector. It promoted financial stability by improving accountability and transparency, especially with regard to derivative transactions. It took steps to curtail excessive risk-taking by financial institutions.