What type of entity is a financial institution?

A financial institution is defined as an entity that provides financial services to its clients or members, which encompasses a broad range of services including banking, investment, and insurance. This is crucial for understanding the role of financial institutions in the economy, as they facilitate the flow of money through various operations such as accepting deposits, offering loans, and managing investments.

In contrast, a firm offering marketing services primarily focuses on promoting products or services rather than providing financial services. A nonprofit organization may engage in various activities, but it is typically not centered on delivering financial services for profit. Similarly, an educational institution's primary purpose revolves around teaching and learning, rather than offering financial services. Thus, the correct answer emphasizes the core function of a financial institution in the broader financial landscape.