M1 Economics: Unit 3 Financial Institutions

It means the financial institutions that take savings from people

• Non-Banking Institutions

• Banking Institution

• Capital Market

• Money Market

Which of the following is an example of non-banking institution?

• Agricultural Cooperative Bank

• Siam Commercial Bank

• Life Insurance Companies

• Government Savings Bank

It is the financial institutions that their functions are related to financial transactions, such as commercial banks, security companies, and asset management.

• Specified Financial Institution

• Credit Foncier

• Pawnshop

• General Financial Institution

It specifically related to finance or specific financial transaction such as Government Housing Bank.

• General Finacial Institution

• Specified Financial Institution

• Multifinancial Companies

• Stock Exchange

It issues or trades the assets of which redemption term is not more than one year or it is a short-term loan.

• Financial institution in capital market

• Depository financial institution

• Financial institution in money market

• Financial institution that has a contract with the source of investment funds

It issues or trades the assets of which redemption term is more than one year or it is along term loan using different financial instruments such as government bonds, etc.

• Financial institution in capital market

• Financial institution in money market

• Depository financial institution

• Financial institution that has a contract with the source of investment funds

Their main duty is to raise capital by taking various forms of deposits from people such as saving deposits and fixed deposits.

• Financial institution that issue financial instruments to raise the capital

• Depository financial institution

• Financial institution that has a contract with the source of investment funds

• Financial institution which duty is to provide credit

It is an institution that allows credit or loan.

• Financial institution that issue financial instruments to raise the capital

• Financial institution which duty is to provide credit

• Depository financial institution

• Financial institution that has a contract with the source of investment funds

They are institutions that create credit instruments in the form of contract with the depositors, such as life insurance companies, social security office, and provident fund

• Financial institution that has a contract with the source of investment funds

• Depository financial institution

• Financial institution which duty is to provide credit

• Financial institution that issue financial instruments to raise the capital

Commercial banks take (a)   from the people and to collect money for the institutes, the business organizations and any individuals to barrow and take some of their deposits to invest for more benefit.