1. What are brokerage firms? A type of non-depository financial institution that manages and facilitates the purchase of bonds, stocks, and other types of investments. 2. What are depository and non-depository financial institutions? How do they differ? Depository institutions tend to be things such as banks and non-depository institutions are usually businesses like life insurance companies. However the difference is that non-depository institutions are not insured by the FDIC. 3. What are credit unions? Non-profit, member owned institutions and another type of depository institution. 4. What are demand deposit accounts? They are accounts that individuals and businesses can use to pay their bills. 5. What are bonds? Bonds are investments that …show more content…
Also if there is a high interest on them holding onto your money I would also consider placing my money into that institution. 2. What are the pros and cons of U.S. savings bonds? The pros are that the savings bond is a written promise to pay back the money loaned after a given time period. The bond would also collect interest and pay the loaner just a bit more whenever the bond was paid. 3. What are some of the problems that individuals might face if they use one of the "problematic" financial institutions? They could have something terrible happen which results in them needing money and they go to these institutions which will charge a lot of interest or have the loan period be very short. This results in debt and a mark on your financial record. 4. What are some of the consumer protections available? What can individuals do to protect themselves? Individuals can place their investments into depository institutions as they are covered by FDIC. They could also place their money into different accounts as it would only cover up to $250,000. 5. What are some of the advantages and disadvantages of choosing a federally-insured