Which of the following is considered a depository institution?
I. the U.S. Treasury
II. a commercial bank like Citibank
III. a credit union for federal government employees
A) I and II
B) I, II and III
C) II and III
D) I only

Question

Quizplus · Accepted Answer

Depository institutions are financial institutions that obtain funds primarily by accepting deposits from the public. Commercial banks and credit unions are both types of depository institutions. Therefore, options II and III are correct. However, the U.S. Treasury is not a depository institution as it does not accept deposits from the public. Hence, option I is incorrect. Therefore, the correct choice is C.

Which of the Following Is Considered a Depository Institution