Home › B.Com Banking & Insurance › Banking and Finance › Money and Financial Institutions › A thrift institution is formed specifically to d…
A thrift institution is formed specifically to do what?
AEncourage household saving and make home mortgage loans
BPool member savings and lend only to those members
CBuy and sell shares and bonds on behalf of clients
DInsure the deposits held at other kinds of institution
Answer & Solution
Correct answer: A. Encourage household saving and make home mortgage loans
1. A thrift institution is a depository institution with a stated purpose.
2. That purpose is to encourage household saving and to make home mortgage loans.
3. Savings and loan associations and savings banks are the two kinds of thrift.
4. Lending only to members describes a credit union, which is a different depository institution altogether.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 15 "Understanding Money and Financial Institutions", section 15.3 U.S. Financial Institutions_
Related questions
Why can a large payment processor spot fraud better than a single merchant can?A banking chatbot is best described as what?Which service channel costs a bank the most to provide?What is happening to branch banking as mobile services spread?Which services do fintech firms typically provide?What makes international banking a high-risk venture?Why can lighter regulation abroad make life hard for a bank expanding overseas?Why do large banks look beyond their own national borders?