ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A commercial bank is a type of financial institution that accepts deposits, offers checking account services, makes business, personal, and mortgage loans, and offers basic financial products like certificates of deposit (CDs) and savings accounts to individuals and small businesses.

Detailed explanation-2: -A lending institution is any type of financial organization or institution that provides loans to borrowers. Other organizations such as a building society, credit union, and savings and loan association can also be considered examples of a lending institution.

Detailed explanation-3: -Banks, Thrifts, and Credit Unions-What’s the Difference? There are three major types of depository institutions in the United States. They are commercial banks, thrifts (which include savings and loan associations and savings banks) and credit unions.

Detailed explanation-4: -Financial Institution-A “financial institution” includes any person doing business in one or more of the following capacities: (1) bank (except bank credit card systems);

Detailed explanation-5: -The Federal Reserve lends to banks and other depository institutions–so-called discount window lending–to address temporary problems they may have in obtaining funding.