The banking crisis spread from the United States to Europe in part because European banks and other financial institutions had invested in CDOs in the United States.   a. true b. false

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Financial Institutions and Federal Bank

The word financial institution is a kind of business organization that deals with the financial activities of a nation. These activities include accepting deposits, making payments, granting loans and advances, transferring funds, holding shares, providing credits, purchasing and selling foreign exchanges, investments in shares, futures commodities, and many more.