The U.S. Financial System

  1. Objective 16-2 Describe the different kinds of financial institutions that compose the U.S. financial system and explain the services they offer.

Many forms of money depend on the existence of financial institutions that provide money-related services to both individuals and businesses. Just how important are these financial institutions, how do they work, and what are some of the services that they offer? We will explore the answers to these questions in the sections that follow as we explain their role as creators of money and discuss the services they offer in the U.S. banking system.

Financial Institutions

The main function of financial institutions is to facilitate the flow of money from users with surpluses ...

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