The primary types of financial intermediaries include commercial banks, thrift institutions, investment companies, pension funds, insurance companies and finance companies. Basically, individuals deposit money into bank accounts, pay insurance premiums, or invest in stocks or bonds and these funds are used to make loans to other consumers and businesses or are invested in securities. Financial intermediaries gain income based on the interest rate, or the difference between interest rates paid to savers and interest rates charged to borrowers. The financial intermediary bears all risk on money loaned. Financial intermediaries protect savers assets while providing funds to borrowers. These intermediaries help to maintain a constant flow of money in the economy. Without financial intermediaries, movement of capital would be hindered and commercial growth would undergo a lack of funds. Additionally, it is imperative that one understands the impact of monetary policy, both domestic and global, and the affect it has on an organization's cost of capital.