Depository Institutions and Their Functions
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Questions and Answers

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?

    <p>Universal banks</p> Signup and view all the answers

    What distinguishes Islamic banks from other types of banks?

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

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

    <p>Underwriting activities</p> Signup and view all the answers

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

    <p>Operating investment houses</p> Signup and view all the answers

    What sets trust companies apart from other depository institutions?

    <p>Offering fiduciary services</p> Signup and view all the answers

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

    <p>Provide financial services to individual members</p> Signup and view all the answers

    What distinguishes thrift banks from universal banks?

    <p>Limited banking services</p> Signup and view all the answers

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

    <p>Promoting rural economy</p> Signup and view all the answers

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

    <p>Privately owned and managed</p> Signup and view all the answers

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

    <p>Promote socio-economic development in Muslim Mindanao</p> Signup and view all the answers

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

    <p>Providing financial services to individuals and small businesses</p> Signup and view all the answers

    What differentiates credit unions from traditional commercial banks?

    <p>Ownership by members</p> Signup and view all the answers

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

    <p>Mortgage loans</p> Signup and view all the answers

    What makes trust companies different from depository institutions?

    <p>Legal ownership of assets by the company itself</p> Signup and view all the answers

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

    <p>Investing in international ventures</p> Signup and view all the answers

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

    <p>Federated ownership structure</p> Signup and view all the answers

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