Asked by Veronica Lovtsova on Apr 25, 2024
Verified
_______ is a nondepository financial institution.
A) Insurance company
B) Savings bank
C) Commercial bank
D) Credit union
Nondepository Financial Institution
Institutions that do not accept traditional demand deposits but instead offer financial products such as mutual funds, insurance, and securities.
Insurance Company
A financial institution that provides coverage, compensating financial losses during events like accidents, theft, or natural disasters, in exchange for premiums.
- Learn about the construction and intention of various fiscal institutions.
Verified Answer
SP
sachin patel6 days ago
Final Answer :
A
Explanation :
Insurance companies are nondepository institutions because they do not accept deposits from the public. Instead, they provide financial protection against risks, such as loss of life, property, health, etc., through insurance policies.
Learning Objectives
- Learn about the construction and intention of various fiscal institutions.
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