Institutional investors are large investors who invest their own money as well as other people's money. Examples of these institutions include pension funds, mutual funds, insurance companies, and banks.
<h3>What do you mean by institutional investors?</h3>
A business or organization that makes investments on behalf of customers or members is known as an institutional investor. Examples of institutional investors include endowments, mutual funds, and hedge funds. Institutional investors are frequently under less regulatory scrutiny and are thought to be savvier than the common investor.
Institutional investors come in a variety of forms, including banks.
- Credit unions.
- Retirement plans.
- Insurance organizations.
- Hedging funds
- Funds for venture capital.
- Investment funds.
- Trusts that invest in real estate.
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Sponser? i think its that sorry if its not
Assume company x deposits $100,000 in cash in a commercial bank. If no excess reserves exist at the time this deposit is made and the reserve ratio is 20 percent, the bank can increase loans by a maximum of $500,000.
Reserve ratio = 20% = 20/100 = 0.25
Initial Money supply = (1/Reserve ratio)*New Deposit = (100,000/0.25) = $ 400,000
Reserve ratio = Rerserve / Deposit
=> Reserves = 0.25*100,000 = 25,000
Max Increase in Money Supply = Initial Money Supply + Reserves/ Reserve Ratio
= $ 400,000 + 100,000
= $ 500,000.
The term commercial bank refers to financial institutions that accept deposits, provide checking account services, issue various loans, and provide basic financial products such as certificates of deposit (CDs) and savings accounts to individuals and small businesses. refers to
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A Mortgage
A bank issues mortgage with interest typically over a long time for people to buy a house of constructing stuff.
C. Dividends.
A dividend is the money a company regularly pays its shareholders
