CHAPTER 10
Components of the Financial System
Introduction
The financial system is a collection of numerous and diverse groups of institutions that are engaged in financial transactions, both domestically and internationally. Banks are a major component of the financial system. Another major component of the system, the Federal Reserve Bank, was discussed extensively in Chapter 5. Other players in the system are mutual funds, investment banks, insurance companies, and finance companies. All of the institutions that deal with money and finance are, to some extent, regulated by the government. The degree of regulation and the resulting requirements differ from one group to another, as well as from one country to country. Regulations in different ...
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