13. Financial Services Flashcards
4 types of financial institution
- commercial bank
- mutual saving bank
- saving and loan association
- credit union
define commercial bank
accept deposit uses to
- make loans
- earn profit
- pay interest to depositor
- pay dividend to owner
define saving and loan association
accept deposit uses to
- make loans primarily for home mortgages
define mutual saving bank
depositor are owner, profit are shared among owners
define credit union
- nonprofit
- owned and run by its member (employees of organisation)
4 nondeposit financail institution
- finance company
- insurance company
- pension fund
- securities investment dealer
define pension fund
provide retirement income for member
- EPF (Employees provident fund)
define finance company
- specialised in making loans to its customer
define insurance company
- invest funds that collected as premium charged for insurance coverage
- AIA, MSIG
define securities investment dealer (broker)
buy and sells stock and bonds for investors and its own account
- CIMB securities, Maybank securities
private retirement scheme
- voluntary long-term savings and investments for retirement
define letter of credit
document sent from a bank that guarantees a seller will receive a buyer’s payment if specified conditions are met
define banker’s acceptance
a bank promise for the buyer to pay a specific amount of money in a future date
2 international service
- banker’s acceptance
- letter of credit
2 fund transfer method
- electronic funds transfer (EFT)
- automated teller machine (ATM)
