--%>

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 : Rate of inflation Normal 0 false false

    Normal 0 false false

  • 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 : Define Appropriations Limit

    Appropriations Limit, State (SAL): The constitutional limit on the expansion of some appropriations from tax proceeds usually set to the level of the previous year's appropriation limit as adjusted for modifications in cost of living

  • Q : Define General Fund General Fund (GF):

    General Fund (GF): For lawful basis accounting and budgeting aims, the predominant fund for the financing state government programs, employed to account for revenues that are not particularly designated to be accounted for by another fund. The main so

  • Q : Graphically combined transactions and

    Normal 0 false false

  • Q : Question based on multiplier Normal 0

    Normal 0 false false

  • Q : Define Veto Veto : It is the Governor's

    Veto: It is the Governor's Constitutional authority to reduce or remove one or more items of appropriation while accepting other parts of a bill.

  • Q : What is Capital Outlay Capital Outlay

    Capital Outlay (CO): A character of expenses of funds to obtain land, plan and build new buildings, expand or transform existing buildings, and/or purchase tools associated to such construction.

  • Q : Explain Appropriation Appropriation :

    Appropriation: The authorization for a particular agency to make expenditures or make obligations from a particular fund for a particular purpose. It is generally limited in amount and period of time during which the expenses is to be

  • Q : Explain Fund Condition Statement Fund

    Fund Condition Statement: A budget display, comprised in the Governor’s Budget, shortening the operations of a fund for the past, present, and budget years. The display comprises the starting balance, previous year adjustments, loans, revenue, t