respond to: Financial institutions play a crucial role in the U$.$S$.$ economy by allowing the movement of funds from individuals or companies who save to individuals or companies who borrow, as well as efficiently managing risks $($Financial Institutions: Benefits, n$.$d$.).$ The three primary categories of financial institutions are contractual, investment, and depository. Banks, credit unions, and savings and loan organizations are examples of depository institutions that engage in the acceptance of deposits and the provision of loans. In addition, they engage in the capital market by providing extended loans for capital investment, as well as participating in the money market, forex market, and interbank market $($Kidwell et al$.,2016).$ Contractual organizations, such as insurance firms and pension funds, collect premiums or payments in exchange for financial risk protection. Derivatives are employed as a means to mitigate risks, engage in investments in newly issued corporate securities$,$ and facilitate the trading of pre$-$existing assets. Investment institutions, such as mutual funds, hedge funds, and private equity funds, aggregate capital from investors and allocate it across a varied range of assets throughout their portfolio $($Financial Institutions: Benefits, n$.$d$.).$ They also trade in the spot $($cash$)$ market, hedge and speculate using derivatives, and trade currencies. In essence, financial institutions assume a crucial function within the United States economy through their facilitation of cash movement, provision of risk management services, and contribution to overall economic growth and stability.