Answered: Depository institutions, nondepository…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Depository institutions, nondepository institutions, and commercial banks

Group of answer choices?

are all financial intermediaries.

offer the same kinds of financial services to the public.

have the same types of liabilities and different types of assets.

are different because only depository institutions are profit-driven.

Expert Solution

Introduction

A financial institution in the United States that is legally permitted to take deposits of money from the consumers is known as a depository institution .Examples of such institutions include savings banks, commercial banks, savings and loan associations, and credit unions.

However, credit unions are not considered "depository institutions" under federal law; only banks and savings associations are.A mortgage bank is an example of a non-depository institution. Despite having a loan licence, they cannot take deposits.

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