The financial institution that pools funds from individuals and then invests them in both the money and capital markets is a:Group of answer choicesinvestment bank.savings bank.credit union.managed fund.
Question
The financial institution that pools funds from individuals and then invests them in both the money and capital markets is a:Group of answer choicesinvestment bank.savings bank.credit union.managed fund.
Solution
The financial institution that pools funds from individuals and then invests them in both the money and capital markets is a:
Managed fund.
Here's why:
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Investment Bank: An investment bank primarily assists individuals, corporations, and governments in raising financial capital by underwriting or acting as the client's agent in the issuance of securities. They do not pool funds from individuals to invest in money and capital markets.
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Savings Bank: A savings bank is a financial institution whose primary purpose is accepting savings deposits. It may also perform some other functions, but it does not pool funds from individuals to invest in money and capital markets.
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Credit Union: A credit union is a type of financial cooperative that provides traditional banking services. Members pool their funds to provide loans and offer other financial services to each other. However, they do not typically invest these pooled funds in
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