Features of Banking And Non-Banking Financial Institutions - SS1 Economics Past Questions and Answers - page 1
Which of the following is NOT a feature of banking institutions?
Accept deposits from customers
Provide payment services
Regulated by the central bank of the country
Offer insurance services
Federally insured by the government up to a certain amount
Which of the following financial services is NOT typically offered by banking institutions?
Mortgages
Checking accounts
Personal loans
Investment management
Business loans
Which of the following regulatory bodies oversees non-banking financial institutions in the United States?
Federal Reserve
Securities and Exchange Commission
Financial Industry Regulatory Authority
Commodity Futures Trading Commission
National Credit Union Administration
Which of the following is a feature of both banking and non-banking financial institutions?
Accept deposits from customers
Provide payment services
Offer various types of loans
Regulated by the central bank of the country
Federally insured by the government up to a certain amount
What is the primary difference between banking and non-banking financial institutions?
Banking financial institutions accept deposits from customers and pay interest on those deposits, while non-banking financial institutions do not accept deposits from customers.
Why are banking institutions federally insured by the government?
Because of the volatile nature of currency and cash, banking institutions are federally insured by the government to make and accept payments.