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Which four institutions make up the main nondepository group?
ACommercial banks, thrifts, credit unions, brokerages
BInsurance firms, pension funds, brokerages, finance firms
CInsurance firms, savings banks, credit unions, brokerages
DPension funds, thrifts, finance firms, commercial banks
Answer & Solution
Correct answer: B. Insurance firms, pension funds, brokerages, finance firms
1. Nondepository institutions provide certain banking services but do not accept deposits.
2. The four main types are insurance companies, pension funds, brokerage firms and finance companies.
3. They serve both individuals and businesses.
4. Any list containing commercial banks, thrifts or credit unions has pulled in a depository institution and is therefore wrong.
_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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