A(n)_____ is an example of a depository institution.

Question

Quizplus · Accepted Answer

A depository institution is a financial institution that accepts deposits from customers and holds those deposits in accounts such as savings accounts or checking accounts. Commercial banks are depository institutions because they accept deposits from customers and use those deposits to make loans and earn profits. Investment banks, mutual funds, and insurance companies are not considered depository institutions because they do not accept deposits from customers in the same way that commercial banks do.

A(n)_____ Is an Example of a Depository Institution