A depository institution is best defined as
A) the most powerful body within the Federal Reserve.
B) as the lender of last resort.
C) an insurance agency, such as the FDIC.
D) as an institution that accepts deposits and makes loans.

Question

Quizplus · Accepted Answer

A depository institution is an institution that accepts deposits from customers and makes loans using those funds. Examples include commercial banks, savings and loans associations, and credit unions. Other options (A, B, and C) are incorrect as they do not accurately describe a depository institution.

A Depository Institution Is Best Defined as