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On Your Mark: Role of financial institutions in decision making, facilitating transactions

In considering your role as a manager at On Your Mark, you prepare to discuss with your diverse staff the role of financial institutions. Answer the following questions to prepare for the weekly status meeting:

What role(s) do financial institutions play in the financial decision making of individuals? Use personal examples to explain.

How do financial institutions facilitate transactions between individuals, businesses, and governments?

Why are these roles necessary?

What role(s) do financial institutions play in financial matters for businesses?

Are the roles the same or different than for individuals? Explain.

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What role(s) do financial institutions play in the financial decision making of individuals? Use personal examples to explain.

Financial institutions play a major role in the financial decision making on individuals. As the final decision makers of regarding interest rates and loans, they are responsible in determining how much money an individual is able to get and at what rate they will pay it back. For example, when taking out my school loan, the bank is responsible in deciding how much to advance me and through this, I was able to know how long it would take me to finish my school and take out a mortgage to secure myself my home.

From a business perspective, financial institutions determine how big or the scope of my business in terms of size because if the bank is able to advance me a huge loan for my car rental business, it means I can buy a large fleet of vehicles and get better corporate accounts to service, essentially making more money for me. Otherwise, I am left to continue dealing with individual clients who are aware that my car rental ...

Solution Summary

In 718 words, this solution discusses the role of financial institutions in financial decision making, the facilitation of transactions between people, businesses and governments, and why these roles are necessary. The role of financial institutions for businesses and individuals is also discussed.

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