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Commercial banks and other depository institutions are examples of financial institutions that serve various functions and roles

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Commercial banks and other depository institutions are examples of financial institutions that serve various functions and roles. These functions are known by you but do you know about other organizations? What about contractual savings organizations, securities firms and finance companies? Why do you think these institutions are important to the financial system? Why are insurance companies and pension funds necessary? How do investment companies and brokerage firms operate? What do you think happens if there were no finance companies?

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