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Unformatted text preview: sometimes only source of finance for a particular sector of the economy preidentified
as being in special need of finance. Policymakers in the United States and a number of
other countries, such as the United Kingdom, have identified residential real estate as
needing special subsidies. This has enhanced the specialness of FIs that most commonly service the needs of that sector. In the United States, savings associations and
savings banks have traditionally served the credit needs of the residential real estate
sector.8 In a similar fashion, farming is an especially important area of the economy in
terms of the overall social welfare of the population. The U.S. government has even directly encouraged financial institutions to specialize in financing this area of activity
through the creation of Federal Farm Credit Banks. Intergenerational Wealth Transfers or Time Intermediation
The ability of savers to transfer wealth between youth and old age and across generations is also of great importance to the social well-being of a country. Because of this,
life insurance and pension funds are often...
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This document was uploaded on 03/09/2014 for the course ACC 301 at HELP University.
- Spring '09