Depository institutions such as savings and loans have deposits with the Fed that ________,and financial institutions such as Fannie Mae have deposits with the fed that ________.

Question

Quizplus · Accepted Answer

Depository institutions like savings and loans receive interest on their reserves held at the Federal Reserve, while financial institutions such as Fannie Mae, which are not depository institutions, do not have deposits with the Fed that earn interest.

Depository Institutions Such as Savings and Loans Have Deposits with the Fed