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Question 9 Which of the following are not depository institutions? The Federal Reserve credit unions savings banks commercial
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Answer #1

The correct answer is option (a).

A Depository Institution is one which accepts deposits from the society and uses these deposits to provide loans to the society, thereby facilitating exchange between those who have excess and those are in need.

The Federal Reserve is the central bank of a country which monitors and controls all the banks in a country but do not accept deposits from the society. But Federal Bank provides all those services to the banks which the banks provides to there customers like giving loans.

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