Depository Institutions and Their Functions

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What is the primary function of depository institutions?

Operating investment houses

Managing investment portfolios

Offering insurance services

Accepting deposits and providing loans (correct)

Which of the following is NOT a depository institution mentioned in the text?

Investment houses (correct)

Banks

Trust companies

Credit unions

What distinguishes a savings and loan association from a bank?

Providing commercial loans (correct)

Accepting deposits and facilitating fund transfers

Acting as an underwriter

Offering investment products

Which institution is characterized by having the most number of branches nationwide and abroad?

Universal banks Signup and view all the answers

What distinguishes Islamic banks from other types of banks?

They operate based on Islamic principles and do not charge interest Signup and view all the answers

Which financial service is typically NOT offered by credit unions as mentioned in the text?

Underwriting activities Signup and view all the answers

In addition to ordinary banking services, what can a universal bank engage in according to the text?

Operating investment houses Signup and view all the answers

What sets trust companies apart from other depository institutions?

Offering fiduciary services Signup and view all the answers

What is a key characteristic of credit unions mentioned in the text?

Provide financial services to individual members Signup and view all the answers

What distinguishes thrift banks from universal banks?

Limited banking services Signup and view all the answers

Which primary financial service do rural and cooperative banks aim to provide?

Promoting rural economy Signup and view all the answers

What is the key characteristic that sets rural banks apart from cooperative banks?

Privately owned and managed Signup and view all the answers

What is the main goal of Islamic Banks according to the text?

Promote socio-economic development in Muslim Mindanao Signup and view all the answers

What is a primary function of credit unions as mentioned in the text?

Providing financial services to individuals and small businesses Signup and view all the answers

What differentiates credit unions from traditional commercial banks?

Ownership by members Signup and view all the answers

Which financial service is typically offered by credit unions as mentioned in the text?

Mortgage loans Signup and view all the answers

What makes trust companies different from depository institutions?

Legal ownership of assets by the company itself Signup and view all the answers

What is the primary goal of thrift banks according to the text?

Investing in international ventures Signup and view all the answers

What is a key characteristic of cooperative banks as mentioned in the text?

Federated ownership structure Signup and view all the answers