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Lesson 18: Banking | Unit 2: Banking Details Page: 4 of 24

Topic: Types <=PAGE BACK | PAGE NEXT=>

There are four types of financial institutions.

Four types:

  1. Banks
  2. Savings and Loans Associations
  3. Credit Unions
  4. Mutual Savings Banks

Important point:

  • Each type was established for different reasons and to play distinct roles in the economy. But now, they all operate much the same.

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M2

The medium-range monetary aggregate for the U.S. economy containing the combination of M1 (currency and checkable deposits) and short-term, small denomination near monies. M2 contains financial assets that either function directly as money for the U.S. economy or can be easily and quickly converted into money. The near monies added to M1 to derive M2 include savings deposits, certificates of deposit, money market deposits, and money market mutual funds. M2 is one of three monetary aggregates tracked and reported by the Federal Reserve System. The other two are designated M1 and M3.

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Today, you are likely to spend a great deal of time flipping through mail order catalogs trying to buy either a coffee cup commemorating the moon landing or a how-to book on surfing the Internet. Be on the lookout for florescent light bulbs that hum folk songs from the sixties.
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Lewis Carroll, the author of Alice in Wonderland, was the pseudonym of Charles Dodgson, an accomplished mathematician and economist.
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