Page 466 - Business Principles and Management

Chapter 17 • Financial Services

financial counseling. Companies such as American Express, ING, Merrill Lynch,
and Barclays operate worldwide and manage trillions of dollars in client assets.
Financial services companies have seen the blending of traditional banking and
nonbanking products and services. Large banks now sell insurance, securities, and
other investments and provide financial counseling. Nonbank companies accept
deposits, make loans, and provide check-writing services.

CHECKPOINT

Identify several nonbank financial institutions and describe the
main products and services each offers.

17.1 Assessment

UNDERSTAND MANAGEMENT CONCEPTS
Determine the best answer for each of the following questions.
1. Which of these types of banks is organized as a nonprofit business?
a. commercial bank
b. mutual savings bank
c. savings and loan organization
d. credit union
2. A company that pools the resources of a large number of investors
and uses that money to make a variety of investments is a
a. finance company
b. mutual fund
c. insurance company
d. savings and loan

THINK CRITICALLY
Answer the following questions as completely as possible.
3. What are the benefits to a bank of offering a variety of financial
services rather than specializing in traditional banking services?
What are the problems that might be encountered?
4. Do you think there is still a need for smaller and more
specialized financial services businesses? What will they
need to do to compete with large, full-service
companies?

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