Briefly List the Various Functions of Financial Institutions

question 40

Essay

Briefly list the various functions of financial institutions.

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Definitions:

Principal

The original amount of money invested or loaned, before interest, or the primary party engaged in a contract or transaction.

Authority

The legal power or right given to an individual or entity to make decisions, and enforce obedience.

Agents

Persons authorized to act on behalf of another, known as the principal, in legal or business matters.

Succession Planning

The strategy for identifying and developing new leaders who can replace old leaders when they leave, retire, or pass away.