Explain the role in the economy of a range of financial institutions.

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Unit 4 – Finance for business

Task 1

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Explain the role in the economy of a range of financial institutions.

High street banks

The high street banks are known usually as commercial banks. Examples of commercial or high street banks are Barclays PLC, HSBC PLC, Lloyds PLC, and Halifax. These are the banks that most people are familiar with. The products that are offered by the high street banks are Mortgages, General Loans, Current Accounts, Savings Accounts, Foreign Exchange.

They also provide insurance and assurance. The services that are offered by the high street banks are Direct Debit, Standing Orders, and Pensions. They also offer Debit and Credit Cards. As technology is being used mostly and is very popular, most of the high street banks have introduced a system called Online Internet Banking. This allows you to purchase products from the internet and this is quick and efficient. All of these services are also provided to business customers.

The business customers are the people who want to open businesses or invest. For the business customers the high street banks offer advice and support to people who are going to open new business. The banks want new businesses to open so that they can take loans and mortgages out.

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Link to UK Economy  

The way the high street banks are linked to the UK economy is in many ways. First off all the high street banks look after people’s money. There are different ways how the high street banks looks after the money. One of the ways the money is kept is through savings account. Interest is added on so by keeping the money in the savings account, the money is increased. In a addition to this the high street banks are the people who provide us with credit facilities, loans and mortgages. If these facilities ...

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