Savings and loans accept long-term savings deposits and use them to fund short-term loans to businesses.

Question

Quizplus · Accepted Answer

Savings and loans accept both short-term and long-term deposits and use them to fund long-term home mortgages and other types of loans, not short-term loans to businesses. This is the traditional business model of savings and loans associations, although some have expanded their services in recent years.

Savings and Loans Accept Long-Term Savings Deposits and Use Them