Chapter 02 - Financial Assets, Money, Financial Transactions, and Financial Institutions
Since there are so many types of financial institutions (commercial banks,
insurance companies, etc.) in the financial system today, grouping them according to
what their distinctive function is greatly help us understand what they do and hence
what kinds of financial assets they prefer to hold. Note that the above three groupings
apply to financial intermediaries. Other financial institutions include security brokers
and dealers, central banks, regulatory institutions, etc.