3 Questions
Which of the following best describes non-bank financial institutions?
Financial institutions that engage in specific functions related to claims, financial information, and advice
What are the two groups that component institutions are sub-divided into?
Quasi-banking and lending of funds from sources other than the public
Are component institutions considered as banks?
No, they are not considered as banks
Study Notes
Non-Bank Financial Institutions
- Non-bank financial institutions are financial institutions that do not accept deposits from the general public and are not licensed as banks.
- They provide various financial services to individuals and businesses, but are not classified as banks.
Component Institutions
- Component institutions are sub-divided into two groups:
- Deposit-taking institutions (e.g. credit unions, building societies)
- Non-deposit-taking institutions (e.g. insurance companies, pension funds, investment firms)
Component Institutions vs. Banks
- Component institutions are not considered as banks, as they do not accept deposits from the general public and are not licensed as banks.
Test your knowledge about Non-Bank Financial Institutions with this quiz. Learn about the various functions and services provided by these institutions, including claims management, financial advice, and portfolio management. Explore the differences between private and government-owned institutions, and discover how they assist in sourcing loans for economic units.
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