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Financial services are the financial services offered by the financial sector, which covers a wide spectrum of businesses that deal with money, such as banks, credit unions, credit-card firms, mortgage companies, investment banks and mortgage brokers. All of these offer financial products to individuals, corporations, and organizations. They also form the backbone of the financial services industry. The services they offer range from investing in securities products, dealing in long and short term financing, issuing credit, and providing insurance and financial products. In short, financial services offer monetary products and services for monetary purposes.

There are many things that make up the financial services industry. It is the money market. This is a vast market that exist beyond normal business boundaries, allowing both individuals and corporations to purchase financial instruments like government bonds, bank notes, and certificates of deposit (CDs). When it comes to making investments, funds are raised from private citizens, corporations, and other institutions in order to build wealth in the economy.

Money markets are a place where people and institutions that are interested in making investments can buy and sell funds without having to rely on the banks. These include savings and loans, commercial loans, corporate bonds, and certificates of deposits. They also include foreign exchange (forex) transactions and money market futures.

As previously mentioned, the financial services sector forms the backbone of the U.S. economy. Therefore, most of the people and institutions who participate in the economy do so through banks. Banks provide loans, mortgages, and other financial products that allow people and institutions to save money in the form of assets. In essence, banks are what create jobs in the U.S.

The main role of banks in the economy is to lend funds. Specifically, they secure loans by creating them and then lend them out. To be categorized as a financial services firm, a bank must engage in the stock market. The role of banks in the stock market is very important, since it acts as a clearinghouse for mergers and acquisitions, which in turn creates more jobs in the economy.

The other role that banks play in the economy is investments. As we have just mentioned, the financial services sector provides financial products for businesses and individuals. One type of financial product that they offer is equities. This refers to the investment of a company’s equity into various financial products such as debt and stock. Banks also make direct investments into other companies. Examples of financial products that banks invest in are mortgage backed securities, corporate bonds, commercial real estate, and treasury bonds.

Another role of banks in the economy is that of money managers. Money managers are responsible for the management of funds. This includes finding solutions to short-term money problems as well as long-term ones. These professionals also help to ensure the security of monetary policies by making certain that interest rates are kept at acceptable levels. Banks therefore fulfill both roles that are essential in the financial services sector.

Therefore, we can say that the financial services professionals are important players in the economy. Aside from being crucial to the functioning of the economy as a whole, they also play key roles within their institutions. All of these roles are crucial, thus one must not see the sector as something that is unimportant.

One may wonder how banks can still be considered as the main players in the economy when they have already been taking care of insurance, manufacturing, transportation, and finance . After all, how can they be considered as mere financial services providers? Answer, they can still continue doing what they do best – providing financial services. In fact, the current scenario of financial crisis shows that the banking sector will never stop being a significant player in the economy.

For instance, financial services like commercial banks offer a myriad of services. The most basic of these mortgages. Most homeowners apply for mortgage loans through these institutions. Commercial banks also provide life insurance for those who are interested in purchasing a property. Finally, institutions like pension and savings institutions offer a variety of retirement plans and investment options.

Investment banking is another crucial role of financial services. Investment banking basically refers to the financial services provided by investment managers. This includes stockbrokers, treasury bills agents, mutual fund management firms, and others. Investment managers are responsible for advising their clients on where and how to invest their money so that the investors can maximize their returns. In a way, investment managers are the front office workers of financial services.