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Lesson 2 Vocabulary
Terms in this set (10)
A financial institution that accepts deposits and channels the money into lending activities; a bank is a business that provides financial services for profit. These services are provided for both the individual and commercial sector.
credit card company
The financial institution or other organization that issues a credit card to the cardholder. This institution bills the cardholder for repayment and bears the risk that the card may be used fraudulently or that the cardholder may not make timely payments or may declare bankruptcy.
credit rating agency
The credit rating agencies are those firms that evaluate the strengths and weaknesses of different types of financial services companies or individuals. These ratings are based on a number of factors, such as the kind of services and risk factors involved with the services for a company's rating, or history of paying bills on time and bankruptcy for an individual.
An alternative to a commercial bank that is usually organized as a nonprofit cooperative. Credit unions usually offer higher rates on deposits and charge lower rates on loans than commercial banks.
A firm licensed to sell insurance to the public. It provides customers with services designed to cover a number of risks that are generally related to an individual's life and property.
Used by businesses and some governments to act as an intermediary that provides a range of services. These include underwriting stocks, debt, facilitating mergers, and acting as financial advisors.
A corporation or trust through which people invest in professionally managed portfolios of securities by pooling their funds with other investors.
The lender that provides funds for a mortgage. Lenders also manage and review the credit and financial information and the property and the loan application process.
savings and loans (S&Ls)
Operates much like a bank, but by law S&Ls must have 65% or more of their lending in residential mortgages.
A company that buys and sells stocks and other securities for investors. May also be known as a broker-dealer.
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