Types of Non-Banking Financial Institutions
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Questions and Answers

Life insurance, health insurance, and car insurance are examples of __________ services.

insurance

The __________ meowed

cat

Stock brokers, merchant and investment bankers, and primary dealers provide __________ services to businesses and corporations.

investment

Foreign exchange services deal in the exchange of __________ currencies.

<p>foreign</p> Signup and view all the answers

Regulatory bodies such as the SEC and FINRA are examples of __________ regulators.

<p>financial</p> Signup and view all the answers

Money market instruments enhance the liquidity of businesses and are typically traded over the counter. They are a type of __________ instrument.

<p>debt</p> Signup and view all the answers

Capital market instruments refer to long-term capital financing instruments like debt and equity traded on recognized stock exchanges. They are part of the __________ market.

<p>capital</p> Signup and view all the answers

Financial regulators are government bodies responsible for regulating, inspecting, and monitoring various financial institutions like banks, insurance companies, and business entities. They play a key role in overseeing the functioning of the financial system to ensure stability and compliance. These regulators enforce rules and regulations to protect consumers and maintain the integrity of the financial system. Examples of ______ include the Securities and Exchange Commission (SEC) and the Federal Reserve System (the Fed).

<p>financial regulators</p> Signup and view all the answers

Investment services are essential for individuals and businesses looking to grow their wealth and achieve financial goals. These services include investment management, advisory services, and asset allocation strategies. Investment professionals help clients make informed decisions about where to invest their money based on their risk tolerance, financial objectives, and time horizon. By providing access to a diversified portfolio of investments, ______ aim to generate returns and build long-term wealth for investors.

<p>investment services</p> Signup and view all the answers

Foreign exchange services facilitate the trading of currencies in the global marketplace. These services enable businesses and individuals to exchange one currency for another to conduct international trade, travel, or investment. Foreign exchange (Forex) markets operate 24 hours a day, five days a week, allowing participants to buy and sell currencies at current exchange rates. The fluctuation in currency values presents opportunities for traders to profit from changes in exchange rates.

<p>foreign exchange services</p> Signup and view all the answers

Financial markets are platforms where buyers and sellers trade financial instruments such as stocks, bonds, commodities, and currencies. These markets play a crucial role in allocating capital efficiently by connecting savers with borrowers. Participants in ______ include individual investors, institutional investors, corporations, and governments. The interaction of supply and demand determines the prices of financial assets, reflecting market sentiment and economic conditions.

<p>financial markets</p> Signup and view all the answers

Insurance services provide financial protection against risks such as accidents, illnesses, and natural disasters. Insurance companies offer various types of insurance policies that cover specific perils and provide compensation to policyholders in case of an insured event. By spreading the risk among a large pool of policyholders, ______ help individuals and businesses mitigate potential financial losses and uncertainties.

<p>insurance services</p> Signup and view all the answers

Non-banking financial companies (______) are financial institutions that offer banking services without holding a banking license. These companies provide a wide range of financial services such as loans, credit facilities, wealth management, and investment advisory. ______ play a crucial role in enhancing financial inclusion by catering to the credit needs of underserved segments of the population. They complement traditional banks in extending financial services to a diverse customer base.

<p>NBFCs</p> Signup and view all the answers

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