A depository institution is a firm that takes deposits from ________ and makes loans to ________.
A) households and firms; other households and firms
B) firms only; households only
C) households only; firms only
D) firms only; other firms only

Question

Quizplus · Accepted Answer

Depository institutions, such as banks, accept deposits from both households and firms and use those funds to make loans to other households and firms, facilitating financial transactions and economic activity.

A Depository Institution Is a Firm That Takes Deposits from ________