Chapter

15.3. U.S. Financial Institutions*

From IntroductionToBusiness OP 8D04gAa

Concepts

1. What effect do higher interest rates have on the U.S. economy?

   "Exhibit 15.4 The Federal Reserve kept short-term interest rates close to 0 percent for more than seven years, from 2009 to December 2015, as a result of the global financial crisis. Now that the econ

2. How does financial intermediation transfer funds from savers to borrowers?

   "The well-developed financial system in the United States supports our high standard of living. The system allows those who wish to borrow money to do so with relative ease. It also gives savers a var

3. How do commercial banks provide financial services and earn profits?

   "Depository Financial Institutions Not all depository financial institutions are alike. Most people call the place where they save their money a “bank.” Some of those places are indeed banks, but othe

4. How do thrift institutions and credit unions serve savers and borrowers?

   "Thrift Institutions A thrift institution is a depository institution formed specifically to encourage household saving and to make home mortgage loans. Thrift institutions include savings and loan as