Question

Anthony would like to have his brokerage firm handle more of his financial needs because he has been pleased with the service provided when he bought and sold stocks and bonds. If he explores the services offered by such firms in more depth, he will find that:________.A. brokerage firms are becoming serious competitors for banks and other depository institutions by offering high-yield combination savings and checking accounts and money market accounts, as well as certain types of loans. B. although brokerage firms offer attractive banking services, federal law prohibits individual investors from holding both a checking account and a securities account with the same firm. C. although brokerage firms can offer some banking services, they typically are less efficient at providing them than banks, because they specialize in buying and selling securities. D. federal laws prohibit brokerage firms from competing with banks, savings and loan associations, and credit unions.

Answer 1

Answer:

A. brokerage firms are becoming serious competitors for banks and other depository institutions by offering high-yield combination savings and checking accounts and money market accounts, as well as certain types of loans.

Explanation:

As the amount of use for physical money is decreased, the need to use the bank decreased along with it.

No other institution can be safely used to store, send, and cash out your saving as long as it implements proper security measures.

This is why brokerages become a serious competitors for banks in saving and checking account. Since they previously tied to investing activities, the savings that you put in the brokerage can be easily transferred to your investment accounts.