In: Finance
The financial services industry includes each of the following entities except:
1. |
Mutual funds |
|
2. |
Factors |
|
3. |
Government-related financial institutions |
|
4. | Private and state pension funds |
Mutual Fund is a part of financial industry as it is an investment institute. As it provides services of investment by pooling funds from various investors.
Private and state pension funds are all kinds of investment therefore part of financial services industry.
Factor is also a kind of financial service in which a third party or intermediary agrees to pay a company's accounts receivables. Sometimes company neeeds immediate money and they cannot wait for receivables to become cash as it takes times. They can borrow from factoring services.
However, governement related financial institution do no provide any kind of financial services. There are for regulation and maintaing order in financial services. Therefore, they are not a part of financial services. NOTE : However, some government institute specifically are made for the purpose of financing services are part of financial indstry.
Hence the correct option is 3. Government related financial institution.
If you have any doubt, you can ask me in the comment section please.