Intro to business chapter 20

mutual savings bank

"A mutual savings bank provides a variety of services. However, it is organized mainly for savings accounts and to make loans to home buyers. This type of financial institution is owned by the depositors; the profits of the mutual savings bank go to the depositors. Mutual savings banks are located mainly in the northeastern United States."

Consumer finance companies

"A consumer finance company specializes in making loans for long lasting or durable goods, such as cars and refrigerators, and for financial emergencies. Because consumer finance companies make loans, they are a part of the financial services industry. However, consumer finance companies do not accept savings as do banks and other financial institutions."

investment companies

"Investment companies allow people to choose investment opportunities for long term growth of their money. Many investors in our society own shares of one of the more than 1,600 mutual funds made available by investment companies."

Pawnshops

"Pawnshops make loans based on the value of some tangible possession, such as jewelry or other valuable items. Pawnshops charge higher fees than other financial institutions."

life insurance companies

"People commonly buy life insurance to provide financial security for dependents. Besides protection, many life insurance companies also offer financial services such as investments. Through careful investing in new and existing companies, life insurance companies can help to expand business in our economy."

check-cashing outlets

"People who do not have bank accounts may use check cashing outlets to cash paychecks and to obtain other financial services. CCOs offer a wide variety of services such as electronic tax filing, money orders, private postal boxes, utility bill payment, and the sale of bus and subway tokens."

Savings and Loans Associations

"Traditionally, a savings and loan association specialized in savings accounts and making loans for home mortgages. In recent years, however, these financial institutions have expanded to offer a greater variety of financial services."

Credit unions

"A credit union is a user-owned, not-for-profit, cooperative financial institution. Credit unions are commonly formed by people in the same company, government agency, labor union, profession, church, or community. Serving members only, credit unions accept savings deposits and make loans for a variety of purposes. Today, credit unions also offer other services such as: special checking accounts, credit cards, mortgages, home-equality loans, safe deposit boxes, investment services, electronic banking services, and loans to small firms."

Mortgage companies

"Buying a home is an important activity in our society. Mortgage companies, along with other financial institutions, provide loans for purchasing a home or other real estate."

Commercial Banks

"Most commonly, a bank is organized as a commerciak bank. Commerciak banks are often called full service banks because they offer a wide range of financial services. Commercial banks offer checking accounts, provide savings accounts, make loans to individuals and to businesses, and offer other services. In large banks, these services may be handled in different departments, such as a savings department, a trust department, a real estate department, or an investment department."