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Financial Institutions: An Introduction

Financial Institutions: An Introduction

This is a free textbook offered by BookBoon. To say that financial institutions play a significant role in the financial system and the economy is a huge understatement. They evolved over centuries to perform functions desired by the general public, the corporate sector, and government. At the very centre of the financial system are the private sector banks, which have the responsibility of, making loans and taking deposits, and the creation of new money (ie bank deposits, because the general public regards deposits as the means of payments), which arises as the outcome of new bank loans extended. The central bank has the responsibility of influencing the growth rate in bank credit extension / money creation via interest rate control. The investment vehicles, such as the retirement funds,... Show More
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