Which of the following institutions is a depository institution?
A) the U.S. Treasury
B) the New York Stock Exchange
C) a financial firm
D) a money market mutual fund

Question

Quizplus · Accepted Answer

A depository institution accepts deposits from customers and holds them in accounts such as checking or savings accounts. Options A, B, and C are not depository institutions. The U.S. Treasury is a government entity, the New York Stock Exchange is a stock market, and a financial firm does not necessarily hold deposits. Money market mutual funds are investments rather than depository institutions, but they do invest in short-term, low-risk securities such as Treasury bills and commercial paper.

Which of the Following Institutions Is a Depository Institution