(I)Banks are financial intermediaries that accept deposits and make loans.
(II)The term "banks" includes firms such as commercial banks,savings and loan associations,mutual savings banks,credit unions,insurance companies,and pension funds.
A) (I) is true, (II) false.
B) (I) is false, (II) true.
C) Both are true.
D) Both are false.

Question

Quizplus · Accepted Answer

(I) is a correct statement as it accurately describes the primary functions of banks, which are to accept deposits from the public and to make loans. (II) is false because, while it correctly includes commercial banks, savings and loan associations, mutual savings banks, and credit unions as types of banks, it incorrectly categorizes insurance companies and pension funds as banks. Insurance companies and pension funds are financial institutions but not banks.

(I)Banks Are Financial Intermediaries That Accept Deposits and Make Loans