Which of the following statements about financial intermedia

Which of the following statements about financial intermediaries is true?

A) Saving and loan associations and commercial banks are less competitive with each other now than in the past.

B) The value of mutual funds shares never fluctuates greatly.

C) A certain type of investment intermediary functions to some degree as a depository institution.

D) None of the above.

Solution

C) A certain type of investment intermediary functions to some degree as a depository institution.

Depository institutions are generally referred to as banks. The term \"depository institution\" originates from the fact that a banking-type financial intermediary accepts deposits from individuals and businesses, and makes loans. Depository institutions are made up of four kinds of banking institutions: commercial banks, savings and loan associations, credit unions, and mutual savings banks.