--%>

What can financial institution do for a DEU

What can a financial institution frequently do for a deficit economic unit (DEU) which it would have complexity doing for itself if the DEU were to deal directly with an SEU?
SEUs typically desire to supply a small amount of funds, while DEUs typically desires to attain a large amount of funds. Therefore it is frequently difficult for surplus and deficit economic units to come together on their own to arrange mutually beneficial exchange of funds for securities. A financial institution can step in & save the day. A bank, savings & loan, or insurance company can take into small amounts of funds from several individuals, form a large pool of funds, and then utilizes that large pool to purchase securities from individual businesses and governments. (It is just one example of the beneficial things financial institutions do for DEUs)

   Related Questions in Finance Basics

  • Q : Near monies Normal 0 false false false

    Normal 0 false false

  • Q : Explain Statewide Cost Allocation Plan

    Statewide Cost Allocation Plan (SWCAP): It is the amount of state administrative, General Fund costs (example, amounts expended by the central service departments like the State Personnel Board, State Treasurer’s Office, State C

  • Q : In which ratios long-term bond investor

    Which ratios would a potential long-term bond investor is most interested in? Describe. Current & potential lenders of long-term funds, such like banks & bondholders, are interested in debt ratios.  While a business's debt ratios ri

  • Q : Describe primary reasons that companies

    Describe primary reasons that companies hold cash? Companies hold cash to make essential payments, to take benefit of opportunities as they arise, and to cover unforeseen emergencies.

  • Q : What is Finance Conversion Code listing

    Finance Conversion Code (FCC) Listing: This is a listing distributed by the State Controller's Office to the departments each spring, that is based on departmental coding updates, will state how the salaries and wages detail will be d

  • Q : Explain Overhead Overhead : Those

    Overhead: Those elements of cost essential in the production of an article or the performance of a service that are of such a nature which the amount applicable to the product or service can’t be determined directly. Generally they relate to tho

  • Q : What is an Initiative Initiative : The

    Initiative: The power of electors to propose statutes or Constitutional amendments and to accept or reject them. An initiative should be limited to a single subject and be filed with the Secretary of State with the suitable number of voter signatures

  • Q : What are Governmental Cost Funds

    Governmental Cost Funds: For lawful basis accounting and budgeting aims, funds which derive revenue from the taxes, licenses, and fees.

  • Q : Explain the basic goal of a business

    Normal 0 false false

  • Q : Question on balance sheet of Yukon Bank

    Normal 0 false false