Which term describes companies that manage monetary transactions for individuals and businesses?

The term that accurately describes companies that manage monetary transactions for individuals and businesses is financial institutions. Financial institutions encompass a broad range of organizations, including banks, credit unions, and other entities that provide financial services such as accepting deposits, making loans, and facilitating payments. They play a critical role in the economy by serving as intermediaries in the financial system.

While options like investment firms, credit unions, and brokerages are also related to financial services, they represent more specific subsets of financial institutions. Investment firms primarily focus on managing investments for clients, credit unions are member-owned institutions that serve specific communities or groups, and brokerages specialize in buying and selling financial securities. In contrast, the term financial institutions broadly captures the entire spectrum of companies that handle transactions and provide essential financial services.