BANKING AFFAIRS

Detailed explanation-1: -Nondepository institutions include insurance companies, pension funds, securities firms, government-sponsored enterprises, and finance companies.

Detailed explanation-2: -Nondepository institutions include insurance companies, pension funds, securities firms, government-sponsored enterprises, and finance companies. There are also smaller nondepository institutions, such as pawnshops and venture capital firms, but they are much smaller sources of funds for the economy.

Detailed explanation-3: -Examples of nonbank financial institutions include insurance firms, venture capitalists, currency exchanges, some microloan organizations, and pawn shops. These non-bank financial institutions provide services that are not necessarily suited to banks, serve as competition to banks, and specialize in sectors or groups.

Detailed explanation-4: -Those that accept deposits from customers-depository institutions-include commercial banks, savings banks, and credit unions; those that don’t-nondepository institutions-include finance companies, insurance companies, and brokerage firms.

Detailed explanation-5: -A non-depository institution is an entity that does not accept deposits. For example, an established FDIC-insured bank may have a branch or office that only handles commercial lending transactions, and does not accept deposits or disburse funds.