Briefly Describe the Following Types of Financial Intermediaries

question 23

Essay

Briefly describe the following types of financial intermediaries:
1. Commercial bank
2. Investment bank
3. Mutual fund
4. Hedge fund
5. Pension fund
6. Insurance company

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Definitions:

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity level, allowing better analysis and control over performance.

Administrative Expenses

Costs related to the general operation of a company, including expenses such as salaries of non-sales personnel, and office supplies.

Planning Budget

A planning budget is projected financial plan that outlines an organization's expected revenues, expenses, and capital needs for a future period.

Net Operating Income

The profit derived from a company's everyday business operations after subtracting all operating expenses from gross income.