types of financial intermediaries

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A.) CREDIT UNIONS - A nonprofit financial cooperative offering deposit accounts, low-interest loans, etc. As soon as you deposit funds into a credit union account, you become a partial owner and participate in the union's profitability. Credit unions are formed by large corporations and organizations for their employees and members.

B.)MUTUAL FUNDS - An investment program funded by shareholders that trades in diversified holdings and is professionally managed.

C.)FINANCE COMPANIES - A company concerned primarily with providing money, e.g., for short-term loans. Specialized financial institution that supplies credit for the purchase of consumer goods and services. Finance companies purchase unpaid customer accounts at a discount from merchants and collect payments due from customers. They also grant small loans directly to consumers at a relatively high rate of interest.

D.) PENSION FUNDS - Pension funds are commonly run by some sort of financial intermediary for the company and its employees, although some larger corporations operate their pension funds in-house. Pension funds control relatively large amounts of capital and represent the largest institutional investors in many nations.

E.)LIFE INSURANCE COMPANIES - The goal of life insurance is to provide a measure of financial security for your family after you die. So, before purchasing a life insurance policy, you should consider your financial situation and the standard of living you want to maintain for your dependents or survivors. For example, who will be responsible for your funeral costs and final medical bills? Would your family have to relocate? Will there be adequate funds for future or ongoing expenses such as daycare, mortgage payments and college? It is prudent to re-evaluate your life insurance policies annually or when you experience a major life event like marriage, divorce, the birth or adoption of a child, or purchase of a major item such as a house or business.
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