1. EPF6 demonstrate knowledge of
the nation’s financial system

2.  Financial markets bring together people
who have money to lend and are willing to
take risks to earn a return with people who
want to borrow for a specific purpose.
 Financial institutions act as intermediaries
by facilitating the interaction of borrowers
and savers in financial markets.

4. A financial institution is an organization
that provides financial products and
services to consumers.

6.  Financial institutions provide products like
checking and other accounts that help
consumers manage money.
 They provide services and advice to help
consumers meet their financial goals.
 Financial institutions can provide a safe
place for individuals to hold money, and
they help channel money from savers to
borrowers.

8.  Banks, credit unions, and insurance
companies are examples of financial
institutions.

10.  Financial institutions attract funds from savers by
offering interest rates on savings.
 Financial institutions use depositors’ savings to
earn income by lending to borrowers or investing in
other financial products.
 Financial institutions are able to pool the savings of
many individuals in order to make loans to
borrowers.
 Banks create money by lending.

12.  Government protects consumers in
financial markets through regulation and
enforcement by agencies such as the
Securities and Exchange Commission and
the Federal Reserve System.