B1 features of financial institutions Flashcards
what is a financial institution?
organisations, such as banks, that provide financial services
e.g. The Bank of England
what are banks?
banks offer general financial services to the public and businesses. they distribute funds from savers to borrowers in an efficient manner, providing liquidity to the economy
what is a building societies?
building societies are financial institutions that provide financial services to their members and not to the public.
what is a credit union?
credit unions provide loans to members. they are funded by members who save. the are small scale organisations.
what is a national savings and investment?
NS&I is a state owned savings bank that attracts individuals savers helping to reduce the governments need to borrow.
what are insurance companies?
insurance companies offer policies to protect individuals or groups from loss of an item, repairing damage or car accidents
what are pension companies?
pension companies provide long term saving plans to fund retirment for individuals.
what are pawnbrokers?
pawnbrokers provide short term loans subject to interest secured by an asset.
