Answer:
Depository Institutions are required to <u>ACCEPT DEPOSITS</u> and <u>HAND OUT LOANS</u>, although the general terms used to describe these financial products may vary across the various types of institutions. Non-depository Institutions, In contrast, accept cash contributions from their customers, but the cash inflows are not called <u>DEPOSITS</u>. Instead, they're called shares or premiums.
Non-depository Institutions include:_____.
B. Mutual funds, insurance companies, brokerage firms, and financial services companies.
What are the different forms and products of non-depository Institutions?
<u>N</u>on-depository institutions include:
- finance companies that generally make personal loans
- securities firms that trade securities, provide brokerage services and/or are investment banks
- insurance companies that provide insurance services
- investment companies that sell their securities and then invest the proceedings, e.g. mutual funds
If you wanted to purchase investment advice, as well as stocks, bonds, and other investments, which type of non-depository institution should you contact?
B. A stock brokerage firm.
Just as depository institutions differ from non-depository Institutions, there are also differences between the structure and activities of, and the financial products and services provided by, various depository institutions. Which of the following statements are true?
A. Mutual savings banks and credit unions are similar in that both are owned by their depositors, who share in their profits.
B. Demand deposit accounts created by commercial banks are usually called checking accounts or negotiable order of withdrawal (NOW) accounts, while those created by credit unions are called share draft accounts.
