Which of the following is a depository institution?
A) the U.S. Treasury
B) private citizen with available lending funds
C) a broker
D) a commercial bank

Question

Quizplus · Accepted Answer

A depository institution is a financial institution that provides deposit accounts, such as checking or savings accounts, to customers. Commercial banks are the most common type of depository institution, making D the correct choice. The U.S. Treasury is a government entity, while a private citizen with available lending funds does not provide deposit accounts and a broker is a middleman between buyers and sellers, none of which fit the definition of a depository institution.

Which of the Following Is a Depository Institution