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Which three kinds of institution accept deposits?
ACommercial banks, insurance firms, and pension funds
BCommercial banks, brokerage firms, and finance firms
CCommercial banks, thrift institutions, and credit unions
DThrift institutions, credit unions, and finance firms
Answer & Solution
Correct answer: C. Commercial banks, thrift institutions, and credit unions
1. Most people call the place where they save a bank, but not every depository institution is one.
2. The depository group is made up of commercial banks, thrift institutions and credit unions.
3. Insurance firms, pension funds, brokerage firms and finance companies all sit in the nondepository group.
4. Any option containing one of those four is describing the wrong group.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 15 "Understanding Money and Financial Institutions", section 15.3 U.S. Financial Institutions_
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