Financial institution is any organization that deals in money and other monetary instruments. There are the traditional financial institutions and the modern financial institutions. It is in this lucid manner that this book will teach you financial institutions. It clearly explains the central bank and throws light on the functions of central bank. It analyzes how the central bank controls the commercial banks. The central bank does this through the open market operation, bank rate, cash-deposit ratio, liquidity ratio, special deposit and moral suasion. It clearly explains the commercial bank and sheds light on the functions of commercial bank. It discusses how the commercial banks create money in an economy. It analyzes the types of bank account like the current account, fixed deposit account and savings account. It appraises the merchant bank and development bank and throws light on the functions of the two types of bank. It evaluates the mortgage bank and savings bank and sheds light on the functions of the two types of bank. It examines the insurance company and stock exchange and highlights the functions of insurance company and stock exchange. And it explores the money and capital markets and examines the credit and debit sides of money and capital markets.