Financial Institution (Noun)
Meaning
An institution (public or private) that collects funds (from the public or other institutions) and invests them in financial assets.
Classification
Nouns denoting groupings of people or objects.
Examples
- The bank is a financial institution that provides various services to its customers, including loans and credit cards.
- A financial institution such as a pension fund invests the money it receives from its members in stocks and bonds.
- The government regulates financial institutions to ensure their stability and protect consumers.
- Investors can choose from a variety of financial institutions when deciding where to put their money.
- The insurance company is a type of financial institution that pools risks and provides financial protection to its policyholders.