Taking the financial institution system in the United States as an example: There are three categories of financial institutions: depository institutions (banks), contractual savings institutions and investment intermediaries. The Table 2-1 provides a guide to the discussion of the financial intermediaries by describing their primary liabilities (sources of funds) and major assets (use of funds). Learning Methods Analysis: when we analyze each financial institution, our analytical thinking is reflected as follows: understanding (finding out) the sources of funds and uses of funds. You can also analyze what's the difference between these institutions. Self-thinking What are the sources and uses of funds for these institutions? 2. What's the difference existed between these institutions? TABLE 2.1 Primary Assets and Liabilities of Financial Intermediaries Primary Liabilities Type of Intermediary (Sources of Funds) Primary Assets (Uses of Funds) Depository institutions (banks) Commercial banks Deposits Business and consumer loans, mortgages, U.S. government securities and municipal bonds Savings and loan associations Deposits Mortgages Mutual savings banks Deposits Mortgages Credit unions Deposits Consumer loans Contractual savings institutions Life insurance companies Premiums from policies Corporate bonds and mortgages Fire and casualty insurance Premiums from policies Municipal bonds, corporate bonds companies and stock, U.S. government securities Pension funds, government Employer and employee Corporate bonds and stock retirement funds contributions Investment intermediaries Finance companies Commercial paper, Consumer and business loans stocks, bonds Mutual funds Shares Stocks, bonds Money market mutual funds Shares Money market instruments