Purchasing power is the rate at which money is exchanged for goods and services. The higher the price level, the fewer the goods and services that can be purchased with every dollar, so the less the dollar is worth. Financial Intermediaries Institutions that serve as a go-betweens, accepting funds from savers and lending them to borrowers. Depository Institutions commercial banks, savings and loans, mutual savings banks, and credit unions. They obtain funds by accepting deposits from the public.
Commercial banks are the oldest, largest, and most diversified of depository institutions.
They get their name from their original type of business. When they started, they initially loaned money to commercial ventures or businesses rather than households. Commercial banks hold demand deposits. That means that a depositor can write a check or demand their money held in deposit at any time. Thrift institutions or thrifts include savings and loan associations, mutual savings banks, and credit unions.