U.S. Banks and Financial Institutions

Definition

These are organizations that deal with money, including businesses like banks, credit unions, insurance companies, brokerage firms. They play a crucial role in the economy by providing financial services to consumers, businesses and governments.

Analogy

Think of these institutions as the heart in the body of our economy. Just like how your heart pumps blood to various parts of your body to keep it functioning, these institutions circulate money throughout the economy to keep it running smoothly.

Related terms

Federal Reserve System: The central banking system of the United States which regulates monetary policy.

Investment Banking: A specific division of banking related to creating capital for other companies, governments and other entities.

Securities Exchange Commission (SEC): The government agency responsible for protecting investors, maintaining fair markets and facilitating capital formation.