finance parcial

most successful firms have ongoing needs for funds. They can obtain funds from external sources in 3 ways:

• financial institution, financial markets, private placement

• the government

• banks

• commercial banks

serve as intermediaries by channeling the savings of individuals, businesses, and governments into loans or investments

• financial markets

• financial institutions

• financial savings

some financial institutions accept customers savings deposits and lend this money to other customers or to firms, other invest costumers savings in earning assets such as:

• financial institutions

• the government

• real state or stocks and bonds, some do both

• financial markets

financial institutions are required by ________ to operate within established regulatory guidelines

• the government

• commercial banks

for financial institutions the key suppliers of funds and the key demanders of funds are individuals, businesses, and governments

• financial markets

• financial institutions

• key customers

• key customers of financial institutions

the _______ that individual consumers place in financial institutions provide these institutions with a large portion of their _______ . Individuals not only supply funds to financial institutions but also demand funds from them in the form of loans.

• savings

  funds

• savings

  cash

• funds

  funds

business firms also deposit some of their funds in financial institutions, primarily in checking accounts with various:

• banks

• coommercial banks

• deposit accounts

• accounts

like individuals, firms borrow funds from these institutions, but firms are net demanders of funds:

• they borrow more money than they save

• the money market and the capital market

• financial markets

• commercial banks

________ maintain deposits of temporarily idle funds, certain tax payments, and social security payments in commercial banks

• system

• markets

• governments

• banks

the major ________ in the US economy are commercial banks, savings and loans, credit unions, saving banks, insurance companies, mutual funds, and pension funds

• government

• financial markets

• investment banks

• financial institutions