What is the distinction between depository institutions and other financial institutions?

Question

Quizplus · Accepted Answer

Depository institutions, such as banks and credit unions, are distinct because they accept deposits from customers. This is a key feature that differentiates them from other financial institutions, which might not accept deposits and instead could focus on investments, insurance, or brokerage services. Both depository and other financial institutions can make loans and seek to maximize profits.

What Is the Distinction Between Depository Institutions and Other Financial