Final answer:
The term for life insurance companies, savings and loan associations, commercial banks, and mortgage companies is 'institutional lenders.' These financial institutions vary in their specific roles but fundamentally facilitate financial transactions like accepting deposits and issuing loans.
Step-by-step explanation:
The term that refers to a group of financial institutions like life insurance companies, savings and loan associations, commercial banks, and mortgage companies in Utah, and essentially anywhere, is known as institutional lenders. These entities are a crucial part of the financial system as they provide capital to the market through various financial instruments. They differ in certain operational aspects but all serve to facilitate financial transactions for their clients.
Banks are financial institutions that accept deposits from the public and create credit. They lend money to borrowers and often offer various other financial services, including wealth management and safe deposit boxes. On the other hand, savings and loan associations, also known as thrusts, were initially established to promote homeownership through mortgage lending. However, they too offer deposit accounts to customers.
Credit unions are member-owned financial cooperatives that provide traditional banking services. They are known for offering higher interest rates on deposits and lower rates on loans as they are not-for-profit entities that exist to serve their members rather than to maximize profits.
These types of institutions each play a specialized role in our economy, and while they offer different services, their overall goal is to provide financial operations that can range from deposit accounts to loans for consumers and businesses alike.