Question

Historically, the primary purpose of savings and loan associations was to ________. provide passbook accounts paying interest above that of commercial banks compete directly with commercial banks provide NOW accounts channel savings into mortgages

Answer 1

Historically, the primary purpose of savings and loan associations was to channel savings into mortgages. The correct option among all the options given in the question is the last option. These are actually the financial institutions that accept money in the form of savings deposits and then channelizes that money into mortgage and other kind of loans.