Asked by Laken Guzic on Jul 08, 2024
Verified
Which of the following financial intermediaries is NOT a depository institution?
A) commercial bank
B) investment bank
C) trust company
D) credit union
Depository Institution
A financial institution that accepts deposits from individuals and provides loan services.
Investment Bank
A financial institution that provides advisory services, financing, and investment services to individuals, corporations, and governments.
- Identify the roles of different financial intermediaries and instruments in the economy.
Verified Answer
AS
Alice SebastianJul 10, 2024
Final Answer :
B
Explanation :
Investment banks are not depository institutions because they do not accept deposits from customers. Instead, they primarily engage in underwriting securities and helping corporations raise capital through the issuance of stocks and bonds. The other three choices (commercial banks, trust companies, and credit unions) are depository institutions because they accept deposits and offer a range of banking services to customers.
Learning Objectives
- Identify the roles of different financial intermediaries and instruments in the economy.