Regulators do not consider a financial institution to be a bank if it does not
A) take deposits.
B) borrow from the Fed.
C) both of the above.
D) neither of the above.

Question

Quizplus · Accepted Answer

Taking deposits is a fundamental activity that distinguishes banks from other financial institutions. While borrowing from the Federal Reserve is a capability banks may have, it is not a defining characteristic of being a bank.

Regulators Do Not Consider a Financial Institution to Be a Bank