When I take my analysis of financial institutions and financial instruments quiz for me, I first determine the types of financial institutions that exist in my local area. Most local areas will have a few large banks, credit unions, and other large financial institutions. I then look at the average loan balances per customer, number of customers that are on credit, and number of customers that are delinquent on their loans. These factors will give me an idea of the overall health of the financial institution.
If you do not know which financial institution is best for you, take my analysis of financial institutions quiz for you! There are many different types of financial institutions. Some of the most common types of financial institutions are commercial banks, credit unions, savings and loans, trust corporations, mortgage banking, and thrift associations. I will explain each one of these in more detail below.
Commercial banks are large financial institutions that do most of their business in the form of loans and investments. These banks take the assets that they have and use them to lend money and buy other assets that they need to get started up or expand. The assets that are offered to banks include money, checking accounts, certificates of deposit, bonds, commercial paper, and various financial products. In order to work with a bank you must have a good credit history. Banks also have a minimum guaranteed account balance required in order to open an account with them.
Credit unions are a mutual organization owned by its members that accept payments in the form of checks or coins for the services rendered to their members. The services that are performed by a credit union may be as broad as collecting payroll, providing services to housing projects, or conducting certain banking transactions. All of the services that a credit union performs must be regularly supported by a profit. If a credit union does not make a profit then it cannot operate until it does make a profit; therefore, credit unions are a great place to take my analysis of financial institutions and financial instruments quiz for me.
Mortgage companies take my analysis of financial institutions and financial instruments quiz for me because they issue my mortgage checks. Mortgage companies are organizations that purchase property from people that want to sell it to them for a profit. When I buy a house I am buying property that is already under contract for a specific amount of time; therefore, the mortgage I write is a promise to pay for property rental payments in the future. The mortgage I write is a debt instrument that is usually secured by a first or second mortgage.
Stockbrokers take my analysis of financial institutions and financial instruments quiz for me because they trade my stock portfolio for me. When I write an investment management or sales order the stockbroker sells the stock to me. The broker receives a commission for the sale. When I write an investment management or sales order the broker receives a commission for the sale. Brokers do receive compensation for the trades they place but in general they are paid more for selling more stock than they receive when buying.
When I take my analysis of financial institutions and financial instruments quiz for me there are several questions I must answer based on my understanding of each subject matter. For example, how does banking work? How does insurance work? How does real estate work?