To discuss: The reason for the creation of the savings institution.
Explanation of Solution
The savings institution was started during the period of 1800’s for helping the commercial banks that serves the essentials of a business than the needs of an individual. Thus, firstly the savings institution has pooled the savings of an individual and made them to make investment in mortgages and securities and it was the main reason for creating the savings institution.
However, at present the savings institution performs services like the commercial banks and their primary goal is to concentrate on the residential mortgage lending and other household financial services.
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Chapter 14 Solutions
Financial Markets and Institutions with Connect Access Card (The Mcgraw-hill/Irwin Series in Finance, Insurance and Real Estate)
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