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Historical View of Financial Markets and Financial Institutions

Economics of Money and Banking
Professor E. Todd
February 16, 2012

Many issues have changed within financial markets and institutions. Many years ago, even BC, there were banking institutions available. Transactions were very informal in the early years to extremely formal in the present day. Financial Markets and Institutions have progressed considerably in the last 50 years. More opportunities of different types have evolved and are available for us to become involved in. Opportunities to invest, save and acquire loans have progressed considerably in financial markets and institutions.
What are financial institutions?
The two types of financial institutions are the depository financial institution and the non-depository institution.
A depository institution is an organization, which may be either for-profit or non-profit, that takes money from clients and places it in any of a variety of investment vehicles for the benefit of both the client and the organization. Common examples of depository institutions are retail banks and savings and loan associations, both of which take deposits into safekeeping and use them to make loans to other customers.
A non-depository institution is a government or private organization (such as building society, insurance company, investment trust, or mutual fund or unit trust) that serves as an intermediary between savers and borrowers, but does not accept time deposits. Such institutions fund their lending activities either by selling securities (bonds, notes, stock/shares) or insurance policies to the public. Their liabilities (depending on the liquidity of the liability) may fall under one or more money supply definitions, or may be classified as near money.
Churches or temples were used as banks because they were considered sacred and no

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