Under U.S.federal law,an institution making only loans to households and offering uninsured checkable deposits and savings deposits qualifies as a commercial bank.

Question

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Under federal law, an institution must be authorized to accept deposits that are insured by the Federal Deposit Insurance Corporation (FDIC) in order to qualify as a commercial bank. Therefore, an institution offering only uninsured checkable deposits and savings deposits would not meet the definition of a commercial bank.

Under USFederal Law,an Institution Making Only Loans to Households and Offering