ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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are no longer important players in financial intermediation.
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since deregulation now provides services only to small depositors.
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have been adept at innovating in response to changes in the regulatory environment.
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produce nothing of value and are therefore a drain on society’s resources.
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Detailed explanation-1: -Banks emphasize business and consumer accounts, and many provide trust services. Credit unions emphasize consumer deposit and loan services. Savings institutions emphasize real estate financing.
Detailed explanation-2: -Savings and loan (S&L) associations (also called thrifts) are lending and banking institutions specialized in offering residential mortgage loans and accepting savings deposits. S&L associations may also offer other services that commercial banks provide to their customers, such as checks and other types of loans.
Detailed explanation-3: -Banks as Financial Intermediaries Banks act as financial intermediaries because they stand between savers and borrowers. Savers place deposits with banks, and then receive interest payments and withdraw money. Borrowers receive loans from banks and repay the loans with interest.
Detailed explanation-4: -Savings and loan associations operate similarly to banks and credit unions in that they offer many of the same services, such as banking and home lending. However, savings and loan associations focus more so on mortgages and savings, whereas banks work with businesses in addition to individuals.